What is the Suez Canal?

The Suez Canal is one of the world's most important and busiest maritime trade routes with approximately 12%-15% of all global trade passing through it. This sea-level artificial waterway is located in Egypt and is approximately 193km (120 miles) long.

 

Why is the Suez Canal important?

 

The Suez Canal is one of the most important waterways in global maritime trade because it:

• Provides the fastest maritime route between Europe and Asia, linking the Mediterranean Sea with the Red Sea
  
  
• Eliminates the need for vessels travelling between Europe and Asia to sail around the Cape of Good Hope at the southern tip of Africa

 

This makes the Suez Canal the preferred route for commercial vessels and has led it to play a strategically important role in global trade and energy supply for over a century. 

Today, the Suez Canal is a critical artery for global trade and supply chains. Approximately 30% of global container traffic transits the canal and more than $1 trillion worth of goods move through it each year. Therefore, its continued smooth operation supports global trade, economic growth and the future of maritime transportation.

Any disruption affecting the Suez Canal can have a huge impact on global shipping markets, causing:

• Longer transit times
  If a vessel needs to sail around southern Africa due to issues with the Suez Canal, it will typically add 10 or more days to voyages between Asia and Europe. These longer transit times disrupt just-in-time supply chains and create delivery delays across multiple industries.
  
  
• Environmental impact
  Diversions around the Cape of Good Hope significantly increase voyage distances. These longer routes result in higher fuel consumption and therefore increased carbon emissions.
  
  
• Reduced global shipping capacity
  Reduced use of the canal temporarily lowers global shipping capacity as vessels spend longer completing voyages.
  
  
• Increased shipping costs
  Reduced global shipping capacity leads to higher freight rates, increasing operating costs across global shipping markets. These costs are often passed through supply chains, making timely market intelligence and experienced shipbroking services increasingly important during periods of disruption.
  
  
• Congestion on other routes
  In the event of disruption in the Suez Canal, any alternative shipping routes that avoid this are likely to experience congestion, creating further delays and inefficiencies across the global maritime industry.
  
  
• Short-term energy price volatility
  The Suez Canal is a strategically important route for global energy supplies. Around 9% of global seaborne oil trade and 8% of global liquefied natural gas (LNG) shipments pass through the canal. Therefore, any disruptions to canal traffic can contribute to volatility in global oil and energy markets.

 

Where is the Suez Canal?

 

The Suez Canal runs north to south across the Isthmus of Suez in the north-east of Egypt. Port Said is the Mediterranean entrance to the canal, while the city of Suez sits at the Red Sea entrance. The canal connects the Mediterranean Sea and the Red Sea, while also separating the African and Asian continents.

To understand precisely where the Suez Canal is located, we can look at its geographic coordinates, which are:

• Northern entrance (Port Said): 31°16'N, 32°19'E
• Southern entrance (Suez): 29°55'N, 32°33'E

 

When was the Suez Canal built?

 

The Suez Canal was built over a ten-year period: construction started in 1859 and the canal was officially opened in 1869. 

The idea for the modern Suez Canal that we know today was led by Ferdinand de Lesseps, who established the Suez Canal Company in 1858 following several years of planning and preparation. Construction of the canal started the following year in 1859 with initial excavations done largely by hand. An estimated 1.5 million people worked to build the canal over the course of the ten years it took to complete.

 

How wide is the Suez Canal? 

 

The Suez Canal is between 300m and 365m wide at its surface, depending on the exact part of the canal you are measuring. It is important to note that the surface width of the Suez Canal is different from the width of its navigation channel – which is between 200m and 210m wide. 

The Suez Canal has been expanded and extended since it was first opened. When it first opened in 1869, it was around 22m wide at the bottom and between 61m and 91m at the surface, with passing bays built every 8km to 10km (5 to 6 miles).

 

Who controls the Suez Canal?

 

The Suez Canal is controlled by the Suez Canal Authority (SCA), which is responsible for managing, operating and maintaining the waterway. 

The SCA is a state-owned, independent Egyptian government authority and reports directly to Egypt’s Prime Minister. The current Chairman and Managing Director of the Suez Canal Authority is Osama Rabie.

The SCA was established in July 1956. Prior to this nationalisation, the Suez Canal was under the sovereignty of the Egyptian government but operated by the Suez Canal Company – a company which was largely controlled by British and French shareholders.

Today, the role of the SCA includes:

• Setting, imposing and collecting transit tolls, which provide a significant source of revenue for the Egyptian government.
  
  
• Levying charges for services including pilotage, towage, berthing and other related marine services.
  
  
• Undertaking real estate and development projects that support the canal’s capacity, efficiency, long-term operations and/or employee welfare.
  
  
• Overseeing all operational aspects of the canal and maintaining its safe and efficient operation.
  
  
• Issuing, maintaining and enforcing the rules for navigating and transiting through the canal.

 

It is important to note that, under the terms of the Convention of Constantinople, the SCA is required to ensure equal access to the canal for vessels of all nations.

 

How many boats go through the Suez Canal a day?

 

On average between 50 and 70 vessels go through the Suez Canal each day, although the exact number fluctuates according to global trade patterns and geopolitical events. The Suez Canal is open for navigation 365 days per year, meaning more than 20,000 vessels transit through the Suez Canal annually. 

The Suez Canal does not allow vessels to enter freely but instead operates a daily scheduled convoy system. Each day, both northbound and southbound convoys make the passage, which takes around 12 to 16 hours. 

Vessel operators planning a canal transit typically work with experienced local shipping agents to coordinate documentation, scheduling and regulatory requirements. Learn more about Clarksons' Suez Canal transit services.

For a wider overview of the support available to vessels calling at ports around the world, explore Clarksons' port services.