The 5 major shipping routes for global trade are the English Channel, the Panama Canal, the Suez Canal, the Strait of Hormuz, and the Strait of Malacca. Here are the ins and outs of each.
The Suez Canal
The Suez Canal has regained global attention since December 2023 due to the actions of Houthi rebels in Yemen, who have been targeting container ships in the Strait of Bab al-Mandeb using missiles and drones. Consequently, major shipping companies like Maersk, Hapag-Lloyd, MSC, and Inventor Chemical Tankers have suspended their use of the Suez Canal.
This sea water canal, inaugurated on November 17, 1869, after a decade of construction, links the Red Sea and the Mediterranean. Together with the Strait of Bab el-Mandeb at the southern exit of the Red Sea, it establishes a vital connection between the Indian Ocean and the Atlantic.
The 193-kilometer-long canal stands as the quickest and most direct sea route between Asia and Europe. With a transit time of just 16 hours, it significantly reduces the shipping duration, saving up to 9 days compared to the alternative route around the Cape of Good Hope. On average, approximately 52 cargo ships navigate the canal daily, contributing to an annual total of around 19,000 ships. However, a notable drawback is the canal’s geographical location in a region marked by political instability. Despite these challenges, there is currently no practical alternative to the Suez Canal. The Northern Sea Route, while considered, is associated with too many risks, including geostrategic concerns.
The Panama Canal
The Panama Canal, inaugurated in 1914, serves as a crucial link between the Pacific and the Atlantic. Stretching over 82 kilometers, this waterway eliminates the need to navigate around Cape Horn in South America, substantially reducing the sea route between the east and west coasts of America. Since 2016, the canal has accommodated large container ships, enhancing its significance.
With its three expansive locks and a sophisticated system designed to overcome a height difference of 26 meters, the canal is widely recognized as an engineering masterpiece. On average, about 40 cargo ships transit through the canal daily, amounting to approximately 14,000 ships annually. Notably, around 6 percent of global maritime trade passes through this vital waterway.
However, the region faces challenges related to drought. Despite this, the Panama Canal is replenished with fresh water from nearby lakes to sustain its operations. Since July 2023, there has been a continuous reduction in the number of daily passages due to a low water level, with only 18 ships currently allowed to use the waterway each day.
As of now, there are no viable alternatives to the Panama Canal. The Nicaragua Canal was initially proposed as a replacement, but significant construction work has been lacking for some time.
The English Channel
The English Channel, alternatively known as La Manche, serves as a vital waterway connecting the North Sea with the Atlantic Ocean.
With over 500 ships navigating through the channel daily, totaling around 180,000 ships annually, it stands as one of the busiest sea routes globally. Despite its high traffic volume, the route is generally regarded as relatively safe, although collisions are more frequent due to the intense maritime activity.
The Strait of Hormuz
The Strait of Hormuz is a critical passage connecting the Persian Gulf with the Gulf of Oman, the Arabian Sea, and the Indian Ocean to the east.
This shipping lane holds global strategic importance as it serves as a conduit for the international oil supply. On average, 14 oil tankers traverse this waterway every day, amounting to over 5,000 tankers and the transportation of 16.5 to 17 million barrels of oil annually.
Regrettably, there are currently no feasible alternatives to this maritime route, although there is potential for oil shipments to be rerouted through pipelines. Moreover, the waterway is situated in a politically complex region and is frequently utilized by Iran as a means of exerting political pressure.
The Strait of Malacca
The Strait of Malacca, situated at the eastern end of the Singapore Strait, connects the Indian Ocean with the South China Sea, representing one of the most challenging bottlenecks in global shipping traffic.
Three major Asian economies—India, China, and Japan—rely heavily on this sea route.
Approximately 200-250 ships navigate through this strait each day, contributing to an annual total of 73,000 to 91,000 ships and constituting around 40% of global maritime traffic.
Presently, there is no viable alternative to this crucial route, despite Beijing actively seeking one, given that a significant portion of China’s energy imports traverses the Strait of Malacca.
The shipping route is additionally deemed perilous due to piracy concerns. While regional military operations have curtailed piracy to some extent, incidents of attacks on ships persist.