The Fragility of Global Trade Routes Learning from the Suez Canal Blockage

1. The Fragility of Global Trade Routes: Learning from the Suez Canal Blockage Time, tide, and the world stood still when the Ever Given got stuck in the Suez Canal. It was a dramatic reminder of how fragile our global trade routes are, costing the global economy $9 billion a day. This incident highlighted the vulnerability of maritime logistics and the need for building resilience in our supply chains. The Impact on Global Trade The blockage had immediate and far-reaching impacts. Global oil supplies felt the pinch, with prices surging by almost 6%. For India, the world's third-largest importer of oil, the event exposed the fragility of its energy security. Nearly 10% of the world’s oil flows through the Suez Canal, and any disruption here has severe consequences for India's economy. Beyond oil, the Suez Canal is a critical artery for India's trade with Europe. Roughly 80% of our total trade with Europe passes through the Red Sea, with the Suez Canal being a key route. The blockage didn’t just delay shipments—it shook confidence in the reliability of this vital trade route. Learning from the Suez Canal Blockage The lesson is clear: over-reliance on a single route like the Suez Canal puts global trade at serious risk. India must diversify its trade routes to ensure economic stability and energy security. Alternatives like the International North-South Transport Corridor (INSTC), which connects India to Europe via Iran, and the Cape of Good Hope, though longer, provide safer routes during emergencies. For more information or to start your journey, contact Blurgs.ai today.