Page 19 - STAT July 2024 for Magzter

Bering Strait

Strait of Malacca

Panama Canal

sages crucial to global trade, including accounts for about 12% of global mari- potential Iranian involvement in conflicts
the Panama Canal, Suez Canal, Malacca, time trade. Highlighting the significance in the Middle East.
Hormuz, and Bab el-Mandeb Strait. These of this passageway, Judah Levine, Head of 3. Strait of Malacca and Taiwan Strait:
passages significantly reduce vessel Research, Freightos Group, said, "The Suez The Strait of Malacca, between Singapore,
travel time and distance. For example, the Canal is a crucial lane for global shipping, Malaysia, and Indonesia, is a crucial route
Panama Canal saves 8,000 nautical miles with 50-60 vessels of all types transiting connecting East Asia, the Middle East,
and 21 days of travel between the Pacific each day for about 19,000 per year, includ- and Europe, accounting for 30% of global
and Atlantic oceans. ing about 30% of global container traffic trade. Two-thirds of China's trade and 80%
Similarly, the Suez Canal saves about and more than a million barrels of crude of its energy imports pass through this
seven days by connecting Europe to oil per day." passageway annually.
Asia. The Strait of Malacca is vital for On the other hand, BCG pointed out The Taiwan Strait sees 40% of the
Asian trade, connecting China, India, and that the Bab El-Mandeb Strait is a maritime world's container fleet traffic but is af-
Southeast Asia, while the Strait of Hormuz passageway connecting the Mediterrane- fected by regional geopolitical tensions.
is essential for global oil transport. The Bab an to the Indian Ocean. It holds a strategic 4. Panama Canal:
el-Mandeb Strait is necessary for oil and military presence due to its importance in This passageway connects the Atlantic and
natural gas routes between the Mediter- oil and natural gas transportation. Pacific Oceans, accounting for 5% of global
ranean and the Indian Ocean. 2. Strait of Hormuz: container trade and enabling approxi-
This narrow passage between Iran to mately 46% of trade from the US East Coast
The significance of these water the north and the UAE and Oman to the to East Asia.
passageways south is crucial in facilitating 20-30%
1. Suez Canal and Bab El-Mandeb of global oil trade. It is a vital route for Challenges posed by maritime
Strait: shipping energy and goods, and it also chokepoints
The BCG study found that the Suez Canal carries significant geopolitical risks due to The world's vital chokepoints are crucial in

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