Suez Canal

The Suez Canal is the artificial waterway across Egypt that connects the Mediterranean Sea to the Red Sea, allowing ships to pass between Europe and Asia without sailing around Africa (the Cape of Good Hope). One of the world's most strategically important shipping routes, it carries a large share of global seaborne trade, including much of the Asia–Europe container and energy traffic, and — unlike Panama — is a sea-level canal with no locks.

Managed by the Suez Canal Authority, which sets transit tolls and rules, the canal defines the Suezmax ship size and is central to global routing and cost. Its importance was dramatically shown by the 2021 Ever Given grounding, which blocked the canal and disrupted world trade, and by the impact of regional security tensions in the Red Sea, which have at times forced ships to reroute around the Cape at great cost in time and fuel. For anyone routing cargo between Europe/Mediterranean and Asia/the Gulf, the Suez Canal is a pivotal chokepoint whose tolls, capacity and security directly affect supply chains. It is one of the great arteries of world trade and central to Egypt's strategic position.