Golden-class container ship “Ever Given” recently ran aground in the Suez Canal. This blocked more than 400 ships from transiting the canal. Suez blockage created huge impacts on global trade and is referred to as Suez Canal Crisis 2021 or Suez Canal Blockade.
Impacts on Trade of the Blockade
Golden-class container ship was headed from China to Netherlands. It had run aground in the canal and got stuck for a week. The global trade losses due to the blockage is estimated to be $9 billion.
India’s 4-Point Plan to deal the Blockade
After blockade, Indian Government had framed a four Point Plan to deal with the Suez Blockade. The GoI plan included prioritization of cargo, advisory to ports, freight rates and re-routing of ships. The plan mainly focuses on reducing Indian trade losses due to the blockage.
Under prioritization of cargo, the APEDA, MPEDA and FIEO will work together and identify perishable cargo for priority movement.
APEDA stands for Agricultural and Processed food products Export Development Authority
MPEDA stands for Marine Products Export Development Authority
FIEO stands for Federation of Indian Export Organizations
This Canal connects Mediterranean Sea and the Red Sea. The canal was officially opened in the year 1869. Until the 1956, the canal was primarily owned by the European shareholders (mostly British and French) and partly by the Egyptian Government. In the year 1956, the then President of Egypt Gamal Abdel Nasser nationalized the canal. This led to Suez Canal Crisis.
About Suez Canal Crisis
Suez Canal Crisis or Suez Crisis or the second Arab-Israeli war. In Israel, it is called the Sinai war (1956-1957) and in Arab world it is called the Tripartite Aggression. The motive of the Sinai war was to regain the control of Suez Canal and remove President Nasser who had nationalized the canal. The Sinai war against Egypt was started by Israel followed by United Kingdom and France. The 3 allies succeeded in capturing the canal. However, there was huge pressure from the United States of America and the USSR against the invasion.
The Suez Canal Crisis led to the closure of the canal between October 1956 and March 1957. Due to the conflict, the United Nations created the UN Emergency Force Peacekeepers. The force polices Egyptian-Israeli border.
The British PM, Anthony Eden resigned due to this crisis. The Canadian External Affairs Minister Lester Pearson won the Nobel Peace Prize for his efforts to end the conflict.
Suez Canal Blockade