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Starting June 1st, 2023 Our warehouse fee will be $0.65/cubic foot per month

In effort to lower the warehouse storage fee during inflation, we have went narrow aisle racking.This construction took us four months but the project is finally completed. With narrow aisle racking, we are able to drop storage by 24%.We as partners will go through this inflation together.

Blogs/education-series

01/25/2024

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The truth about the Suez Canal and its significance in global maritime transportation

    Maritime transportation is crucial globally, benefiting everyone in our daily lives. Despite advancements in aviation, the shipping industry remains indispensable for economic growth. Serving as the backbone of international trade, freight transportation moves a vast array of goods daily, contributing significantly to economies. According to the International Chamber of Shipping, the shipping industry, with over 50,000 merchant ships operating internationally, handles nearly 90% of world trade.

    The truth about the Suez Canal and its significance in global maritime transportation

    In addition to natural resources, human interventions such as artificial canals have enhanced global marine transportation. Canals like the Panama Canal, Volga-Don Canal, Corinth Canal, Grand Canal, and Suez Canal have transformed shipping by shortening routes and reducing operational costs. These artificial waterways provide alternative and efficient transportation routes across major seaways worldwide, playing a crucial role in facilitating international trade.

    1. Where is Suez Canal's? (Map included)

    Suez Canal's location

    The Suez Canal, spanning 193.30 km (120 miles), is an artificial sea-level waterway situated in Egypt, connecting the Mediterranean Sea to the Gulf of Suez, a northern extension of the Red Sea. Opened officially in November 1869, it stands as one of the world's busiest shipping routes, facilitating the passage of numerous vessels annually.

    This canal, serving as a link between Asia and Africa, offers the shortest maritime route between Europe and regions bordering the Indian Ocean and the Western Pacific Ocean. Constructed by the Suez Canal Company from 1859 to 1869, the Suez Canal Authority has since owned and maintained it.

    In 2015, Egypt completed a substantial expansion, deepening parts of the canal and adding a second 35km-long shipping lane. This enhancement accommodates two-way traffic and larger vessels, exemplified by the 2017 passage of the world's largest container ship, the 400-meter long OOCL Hong Kong, carrying 21,400 containers.

    The Suez Canal plays a pivotal role in Egypt's economy, witnessing approximately 8% of global seaborne trade annually and generating $5.3 billion in 2017, according to Reuters.

    Despite its formal completion in 1869, the idea of connecting the Nile River to the Mediterranean Sea and the Red Sea dates back around 40 centuries, with historical evidence of various rulers reopening and extending the canal.

    Modern efforts to build a canal began in the late 1700s during Napoleon Bonaparte's expedition, but construction was halted due to a measurement error. In the mid-1800s, French diplomat and engineer Ferdinand de Lesseps secured support from the Egyptian viceroy Said Pasha, leading to the formation of the Universal Suez Ship Canal Company in 1858. This company was granted the right to construct and operate the canal for 99 years before it came under Egyptian government control.

    👉 See more:

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    Mounting delays and increased costs are putting pressure on Chinese exporters due to the recent shipping attacks in the Red Sea

    Suez Canal map UPDATED

    Suez Canal map 1Suez Canal map 2Suez Canal map 3

    2. The importance of the Suez Canal in maritime shipping

    The Suez Canal is of paramount importance in maritime shipping for several key reasons:

    🛳 Strategic Shortcut: The canal serves as a critical shortcut for maritime traffic, providing a direct link between the Mediterranean Sea and the Red Sea. This strategic location significantly shortens the route for ships traveling between Europe and vital regions bordering the Indian and Pacific Oceans.

    🛳 Time and Cost Efficiency: Ships transiting through the Suez Canal experience substantial time and cost savings compared to alternative routes. The canal reduces the travel distance from Europe to Asia by approximately 7,000 kilometers, leading to fuel savings and operational cost reductions for shipping companies.

    🛳 Global Trade Facilitator: As one of the busiest shipping routes globally, the canal plays a pivotal role in facilitating international trade. It serves as a crucial conduit for the transportation of goods and commodities between major economic regions, contributing significantly to the efficiency of the global supply chain.

    🛳 Economic Impact: The revenue generated from tolls and fees associated with canal usage contributes significantly to the economy of Egypt. This income supports infrastructure development and economic growth in the region.

    🛳 Historical Military Significance: Beyond its commercial importance, the Suez Canal has historically been strategically significant for military operations. Control over this key waterway has influenced various conflicts and wars in the region.

    Importance of the Suez Canal in maritime shipping

    In summary, the Suez Canal's importance in maritime shipping lies in its role as a vital and efficient waterway, connecting major international trade hubs, facilitating global commerce, and contributing to economic development.

    3. Procedure for Ship Transit through the Suez Canal

    Procedure for Ship Transit through the Suez Canal

    Ships transit through the Suez Canal following a well-defined process:

    #1 - Entering the Canal

    Ships entering the canal approach the northern or southern entry points, namely Port Said in the north and Suez in the south. Before entry, vessels must adhere to regulations and coordinate with the Suez Canal Authority (SCA) for scheduling and guidance.

    #2 - Convoy System

    The Suez Canal operates on a convoy system to manage traffic efficiently. Ships are grouped into convoys, and each convoy is guided by a canal pilot. Convoys are organized based on ship size, type, and destination.

    #3 - Pilot Boarding

    Suez Canal pilots board the vessels to guide them safely through the canal. These pilots are experienced maritime professionals familiar with the canal's navigation.

    #4 - Navigation through the Canal

    The canal consists of multiple navigation channels, and pilots guide ships through the appropriate route. Navigation is aided by a series of buoys, lights, and signals, and vessels must adhere to speed limits and safe distances from other ships.

    #5 - Traffic Control and Control Towers

    Control towers along the canal monitor ship movements and provide instructions to ensure safe and efficient traffic flow. Traffic control measures are in place to avoid congestion and maintain a smooth transit for all vessels.

    Traffic Control and Control Towers

    #6 - Bypassing Stations and Lakes

    The canal includes bypassing stations and lakes where ships may pass each other. These areas are strategically designed to accommodate two-way traffic.

    #7 - Exit and Completion

    After navigating through the canal, ships exit either at the northern or southern end, depending on their initial entry point. Pilots disembark, and vessels resume their journey in the Mediterranean Sea or the Red Sea.

    #8 - Tolls and Fees

    Ships are required to pay tolls and fees for using the canal, and these charges contribute to the maintenance and operation of the Suez Canal. It's crucial for ships to follow the regulations set by the Suez Canal Authority to ensure safe and efficient transit through this vital waterway. The entire process is carefully managed to accommodate the high volume of maritime traffic and maintain the canal's importance in global shipping.

    4. The building history of the Suez Canal

    Building history the Suez Canal

    The construction of the Suez Canal is an important "golden" chapter in the history of maritime engineering and international trade. The idea of connecting the Red Sea to the Mediterranean Sea dates back about 4,000 years. Various rulers, including the Pharaohs of ancient Egypt, considered the concept of a canal connecting the Nile, the Mediterranean, and the Red Sea.

    The first recorded attempt to build a canal in the area occurred during the reign of Senausret III, an Egyptian Pharaoh (1887-1849 BC). However, the canal was frequently abandoned and reopened over the centuries under different dynasties, including Sity I (1310 BC), Necho II (610 BC), Persian King Darius (522 BC ), Emperor Trajan (117 AD) and Amro Ibn Elass. (640 AD).

    Senusret III - Suez canal

    Napoleon's expedition began in the late 1700s during his expedition to Egypt. Napoleon aimed to create a French-controlled channel across the Isthmus of Suez, potentially causing trade difficulties for the British.

    In 1799, studies of Napoleon's canal planning began, but measurement errors showed significant differences in sea levels between the Mediterranean and the Red Sea. This led to the misconception that the canal was not feasible and construction was stopped.