The Suez Canal: Navigating Through History and Challenges

A cura di Filippo Mancini, 4AS

The Suez Canal stands as a legacy to human ingenuity, connecting the Mediterranean Sea to the Red Sea and serving as a vital artery for global trade. As ships from around the world traverse its waters, the canal has played a pivotal role in shaping the economic relations between Italy and this engineering marvel.

The Relationship between Italy and the Canal

Italy has long enjoyed a robust relationship with the Suez Canal, with trade routes passing through its waters contributing significantly to the Italian economy. The canal’s strategic location facilitates the smooth flow of goods, resulting in substantial economic gains for Italy. The trade passing through the canal generated a staggering 8.6 billion euros for Egypt in the fiscal year 2022–2023.

The canal’s inception in 1869 was a collaborative effort involving the French entrepreneur Ferdinand de Lesseps and the Italian engineer Luigi Negrelli. Their vision was to create a shortcut between the Mediterranean and the Red Sea, reducing voyage time and fostering international trade.

However, the canal’s recent history is marked by a challenging period. A crisis unfolded, impacting both the canal’s functionality and the economic ties between Italy and Egypt. This crisis has been triggering increases in shipping costs, causing ripples in the global economic landscape.

The History of the Canal

The Suez Canal has a rich history, dating back to Queen Victoria’s reign when it became a symbol of the British imperial power, underscoring its geopolitical significance.In 1875 the Prime Minister Disraeli purchased the shares of the majority shareholder ‘Ismail’, who had been one of the more unfortunate casualties of the Suez project. Ismail had very little choice but to sell his 6.5 million pound investment at quite a loss. Hence the Imperial concession became the major shareholders in the Suez Canal and Queen Victoria was as pleased as punch.

The primary motivations behind the canal’s construction were economic and strategic. By creating a direct route between Europe and Asia, nations aimed to expedite trade and establish a shortcut that bypassed the long journey around the southern tip of Africa.

Luigi Negrelli’s ambitious engineering project materialized into the Suez Canal, a masterful feat that revolutionized maritime transportation. Not only did the canal’s completion forster global trade but also brought economic prosperity and strategic advantages for the nations involved.

The 1956 Suez Crisis, when Britain along with France and Israel invaded Egypt to recover control of the Suez Canal, was arguably one of the most significant episodes in post-1945 British history. Its outcome highlighted Britain’s declining status and confirmed it as a ‘second tier’ world power.

The Canal Today

In the contemporary landscape, the Suez Canal remains a vital conduit for international trade. However, the canal faces challenges that have led to a precarious situation, affecting its overall functionality, due to overseas Houthi attacks on Red Sea shipping and the consequent UK and US air strikes.

Several factors have contributed to the recent crisis in the Suez Canal. Geopolitical tensions, climate change, and technological limitations have all played a role in disrupting the smooth operation of this crucial waterway.

The consequences of the canal’s crisis reverberate globally. Shipping delays, increased costs, and interruptions in the supply chain have far-reaching effects, affecting not only Italy but nations worldwide.

Conclusion

To overcome the challenges faced by the Suez Canal, international collaboration is essential. Nations, including Italy, must work together to address the root causes of the crisis, invest in technological advancements, and establish contingency plans for future disruptions.

Despite the current challenges, the Suez Canal is likely to retain its status as a “superpower” in global trade. With concerted efforts to resolve issues and a commitment to innovation, the canal can continue to serve as a keystone in the world’s economic activities, ensuring its enduring significance on the world stage.