The Suez Canal is in the news lately due to attacks on shipping in the Red Sea. Canals are shortcuts that can save a lot of time and money. A lot of ships are taking the very long way around the tip of Africa. In a just in time world that causes some supply side disruptions.
Just to make things interesting the Panama Canal is in trouble. The issue this time isn’t attacks but climate and weather. The canal uses a lot of water. The feeder lakes are not getting enough rain to run the canal properly. Shipping now has to take the treacherous route around the tip of South America. Once again, we have supply disruptions.
An interesting little canal came into operation in the last couple of years. Poland built the Vistula Canal. The reason? Russia. Ships leaving that part of Poland had to pass through the Russian controlled waters of Kaliningrad, a Russian enclave on the Baltic Sea. Economically it probably doesn’t make sense but politically it’s a genius move.
So what’s the big deal about canals? Shipping is still the least expensive way to move goods around the world. Anything that affects shipping affects the world economy.
-Sixbears
The Mississippi River is also a very important "canal". Was so low for at least two years barges had to be half loaded at best.
ReplyDeleteThere is a reason major cities grew up around water transport.
The Mississippi made the country great. Perfect way to connect the center of the country with the rest of the world. Low water was a big issue but I think it's doing better now.
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