This Will SHUT DOWN The Suez Canal! Iran and Russia Will Take Over!

This Will SHUT DOWN The Suez Canal! Iran and Russia Will Take Over!

now it’s one of the world’s most important shipping routes and it’s blocked a giant container ship ran ground in the seers canal after losing power and at around 200,000 tons and over 400 m long the container but it’s going to take some shifting 50 ships a day normally passed through the canal remember the everg given getting stuck in the Suez Canal back in 2021 it caused a global Shipping nightmare highlighting the dangers of relying on a single choke point for trade well what if there was another option that’s where the Persian Corridor 2.0 comes in Russia Iran and India are looking to revive plans for a major trade route that could rival the Suez Canal sea transportation is a key part of global trade because it offers large capacity and low costs for shipping Goods internationally in 2015 over 80% of international trade was transported by ships this highlights the importance of ocean shipping for the global economy one of the major routes for sea transportation is the Suez Canal in Egypt which connects the Mediterranean Sea to the Red Sea this canal is crucial because it allows ships to take a shorter route between Europe and Asia saving time and money however in March 2021 the Suez Canal was blocked by a massive cargo ship called the everg given the ship got stuck blocking the canal completely and causing a significant disruption in global trade during the blockage more than 300 vessels were waiting to pass through the canal this stoppage affected 12% of the World’s Trade holding up goods worth between 15 and 17 billion the blockage also led to a spike in gas prices increasing by 0.40 in the aftermath of the incident even though the blockage was eventually cleared the effects continued for months ships had to queue up to pass through the canal causing delays in container and ship availability this backlog affected different regions differently the United States for example was less impacted than Europe and Asia because it relies more on routes through the Pacific Ocean and the Panama Canal however even these rots fa challenges due to bottlenecks made worse by the covid-19 pandemic to avoid these issues some us shippers started looking for alternative routes such as Air Freight or increased use of the Panama Canal in contrast the Suez Canal Remains the main route for shipping between Europe and Asia the blockage had a significant impact on major development strategies like China’s belt and Road initiative this initiative is a massive project involving investments in 70 countries and international organizations aiming to create a maritime Silk Road connecting South China with Central Europe and the North Sea the blockage disrupted this strategy showing how one incident can have far-reaching effects on the global economy the Suez Canal blockage highlighted the vulnerability of relying heavily on a single route for global trade as a result there has been an increase in shipping costs especially for Air Freight as some shippers shifted their shipments from sea to Air transport given that the Suez Canal is one of the five major checkpoints in the world there is a need to reassess how global trade is conducted and to consider alternative routes to avoid similar disruptions in the future however it’s not the only possible route an alternative is the Cape of Good Hope which is the southern tip of Africa When comparing the Suez Canal route and the Cape of Good Hope route it was found that the Cape of Good Hope Has the potential to be a strong alternative another option is the Northern sea route which runs along the coast of Russia in the Arctic this route can be cheaper for shipping companies looking to reduce costs the blockage of the Suez Canal by the everg given highlighted the importance of the canal any disruption here can cause major delays and financial losses in global trade companies need to consider costs safety and geographical factors when choosing their shipping routes the Suez Canal is crucial but it also has its risks and challenges safety is a major concern for the Suez Canal since it opened in 18 1969 there have been criticisms regarding its safety and management the Canal’s location in a politically unstable region makes it vulnerable to terrorist attacks and other security threats Studies have shown that the safety situation of the Suz Canal is poor however the Egyptian authorities have implemented strict security measures to protect the canal there are multiple military units stationed along the canal equipped with advanced technology and constantly updated equipment surveillance is extensive with High coverage of CCTV cameras at every signal station the Suez Canal Container Terminal Works closely with law enforcement agencies to ensure the security of the terminal and nearby areas access to the terminal is heavily guarded requiring positive identification despite these security measures the Canal’s location still presents challenges during Wars and conflicts it has often been a target for attacks this makes the safety and security of the canal a continuous concern for shipping companies a blockage of the Suez Canal also leads to higher costs for container Transportation Europe is a major player in World shipping trade accounting for 23% of containers a blockage can increase the cost per container by more than 10% which has a big impact on overall Transportation expenses the Suez Canal has specific dimensions it is about 193 km long 28 M deep and its widest point at the great Bitter Lake is only 133 M wide the Suz Canal Authority SCA sets limits on the width and depth of vessels but not on their length ships longer than 400 m need permission from the sca to navigate the canal many of the largest cargo ships like the everg given are around 400 m long the everg given which got stuck in the canal in 2021 is is 399.99 containers these large ships known as suezmax vessels are difficult to stop suddenly and must maintain a steady speed to navigate effectively when such a large ship gets stuck the process to free it is complex and timec consuming requiring specialized equipment this makes blockages almost inevitable especially because the length of these ships far exceeds the Canal’s width when the Suz Canal is blocked the impact on global Shipping is significant ships are forced to take longer routes which increases travel time and costs this not only affects the shipping companies but also leads to higher prices for goods transported by sea inflation in container Transportation costs means that consumers may end up paying more for products shipping companies need to consider various factors when planning their routs the incident caused major logistical problems ships had to either wait in line for the canal to clear or take the much longer Route Around the Cape of Good Hope at the southern tip of Africa which added significant time and cost to their Journeys the delay affected all types of vessels including those carrying essential Commodities like oil and gas leading to Temporary shortages and higher prices for these Goods the blockage not only caused immediate trade losses but also had a ripple effect on the global economy shortages of essential Commodities like oil and gas could lead to higher prices according to aliance a German insurer the incident might reduce global trade growth by 0.2% to 0.4% annually insurance companies are facing substantial losses estimated at around $31 billion as they have to compensate for the delays and damages caused by the blockage this includes claims from shipping companies businesses waiting for goods and other affected parties numerous lawsuits are expected as companies seek compensation for their losses these claims will likely focus on the financial impact of the delays and additional costs incurred due to the incident the legal processes to resolve these claims could take years prolonging the overall impact on the supply chain even before the ever given incident the maritime industry was under strain due to the covid-19 pandemic the pandemic had already doubled shipping costs and caused disruptions in global trade the Suez Canal blockage added to these existing challenges putting even more pressure on the supply chain the impact of the everg given incident on the global supply chain is expected to be longlasting beyond the immediate trade losses and logistical challenges the incident highlighted the vulnerabilities in the global supply chain companies may need to rethink their strategies possibly finding alternative routs or methods to avoid similar disruptions in the future even though the everg given was eventually freed the effects of the blockage will be felt for years the disruption caused a chain reaction affecting Global Supply chains and delaying the delivery of goods worldwide the owner of the everg given is responsible for the damage caused by the blockage this includes damage to the Suez Canal and losses suffered by other Canal users the UK pni Club the ship owners’s insurer covers these third-party liabilities and ship operating expenses they will pay for the damage to the canal and may need to recover costs from the ship owner they also have to compensate companies that experienced cargo damage business interruptions and loss of Market opportunities Evergreen the operator of the everg given is responsible for all the goods on board their insurer TT Club covers the general average a principle where all cargo owners share the loss and Salvage costs this insurance covers all containers and fuel on the ship whether Partners can claim compensation depends on their contracts Evergreen might also face claims from Shipping consortiums groups of shipping companies that work together additionally Evergreen could suffer a loss of reputation or Goodwill due to the incident the blockage disrupted Global Supply chains leading to delays in the manufacturing industry components needed for products couldn’t be delivered on time causing production delays and potential shortages this affects the ability of companies to meet customer demands promptly the Suez Canal Authority SCA and the owners insurers and operators of the everg given are currently in negotiations after unsuccessful talks on 13th April 2021 a Court ruled that the sca should be awarded USD $916 million in Damages and granted a warrant to seize the everg given the sca stated it would hold the ship until this amount is paid which is approximately USD $1 million meanwhile the cargo on board the everg given remains stranded cargo owners are facing additional costs delays in delivery and complaints from customers there is there is a possibility that the operator of the everg given may have to unload the 18,000 containers filled with Goods onto other vessels to resolve the situation according to maritime law in large scale incidents like this cargo owners on board a ship may be required to contribute to the cost of rescue operations for instance in the case of the MK honam fire in 2018 cargo owners had to pay fixed sums amounting to 54% of their car value to release their goods similarly container owners on the everg given might face additional costs to have their cargo released burnhard schulta ship management the technical manager of the everg given is responsible for ensuring that the crew operates the Ship Without fault if investigations find that the crew was at fault the operator may have to pay damages if burnhard schulta ship management has purchased professional indemnity Insurance the insurer would cover these costs other affected parties such as charterers May seek compensation for cargo damage and late delivery charges from the ship owner in places where the heg visb rules apply it can be challenging to claim for Pure economic loss however contractual terms and other rights May influence the outcome of such claims depending on where the contract was signed let’s face it the Suez Canal is a vulnerability any political instability in the region or even an accident can disrupt global trade plus with shipping volumes ever increasing congestion is a growing concern this isn’t a completely new idea the concept has been around for a while under the name International north south transport Corridor or insc for short the idea is to create a multimodal transportation Network meaning Goods could move by sea Rail and Road Russia Iran and India are the key players here but other countries could potentially join in the route would stretch from Russia in the north down through Iran and then by sea to India there have already been some big moves towards making this a reality just recently Iran and Russia signed a deal to develop a new Railway connection that would be a key part of the corridor all three countries are founding member states on the project the goal is to connect India Iran azerbijan Russia and Kazakhstan among other countries to make trade between these regions faster and more efficient azerbijan Armenia Kazakhstan and Belarus are important member states in this project azerbijan is particularly active building new train lines and Roads to fill in the gaps in the corridor Turkmenistan although not an official member yet is expected to connect to the corridor through New Road Links during a visit to Turkmenistan India’s Prime Minister Modi invited the country to join the insc officially the route through aeran is crucial because it connects India Iran azerbijan Russia and Kazakhstan Iran is working on constructing a key part of this route the kvin rash aara Railway which is 205 km 127 Mi long this project also includes building roads and bridges adding 369 km 230 Mi of infrastructure including 22 new tunnels and 15 Bridges as of early 2017 90% of the cosin terar rashed rail route was completed with the remaining section from rash to aara also starting construction in 2017 India and Iran have a long-standing agreement to develop the chabahar port into a full deep sea Port this port is less congested than Iran’s main Port bandar abas which handles 85% of the country’s Seaborn trade but is often overcrowded chabahar currently has a capacity of 2.5 million tons annually with plans to expand it to 12.5 million tons unlike bandar abas chabahar can handle larger cargo ships those bigger than 100,000 tons there are long-term plans to integrate chab chahar port with the insc this would allow India to use chabahar as a Gateway for trade with Europe making the insc even more significant by connecting chabahar to the insc India aims to streamline its trade routes reducing the time and cost of transporting goods to Europe and other regions for India the insc holds strategic importance for two main reasons both involving China firstly it supports India’s effort efforts to strengthen ties with Central Asian countries through initiatives like the connect Central Asia policy this is crucial for India’s act East policy which aims to boost economic ties and ensure Regional stability secondly the insc serves as an alternative to China’s ambitious one belt one road brri initiative the brri aims to enhance infrastructure connectivity across Asia Europe and Africa but it also raises Geo political concerns India views the insc as a way to counterbalance China’s influence while fostering its own Regional Partnerships in recent years India has engaged actively with Central Asian countries through dialogues and highlevel visits this includes prime minister Narendra modi’s tour of all five Central Asian nations in 2015 signaling India’s commitment to enhancing economic cooperation in the region despite these efforts India’s trade with these countries still lags far behind China’s highlighting the competitive challenge posed by China’s economic influence the insc promises several strategic benefits for India it aims to significantly reduce the cost and time of transporting goods from India to Eurasia and surrounding regions studies indicate that the corridor could make Freight movement 30% cheaper and 40% faster which would boost India’s competitiveness in international trade Iran is actively participating in the international north south transport Corridor insc with a focused strategy aimed at enhancing infrastructure attracting Investments and optimizing Logistics Iran prioritizes investing in transport infrastructure this involves building new facilities upgrading existing ones and enhancing Rolling Stock like locomotives and Freight cars the goal is to modernize and expand Transportation capacity along the insc Iran is expanding its Fleet of containers including refrigerated units to accommodate diverse cargo needs this includes both standard 20t and 40t equivalent units teu and feu essential for transporting goods efficiently over long distances Iran aims to bolster its Fleet of vessels ranging from grain carriers to row packs and r River sea navigation vessels especially in the Caspian Sea region this diversification supports flexible Transportation options and enhances connectivity within the insc strengthening trans shipment facilities at key points between Iran aeran and Turkmenistan is crucial these facilities facilitate smooth cargo transfers and improve overall Logistics efficiency along the corridor irisl Iran’s key shipping line plays a crucial role in the international north south transport Corridor insc by strengthening ties with Russia and CIS countries their strategy focuses on connecting Iran’s Southern ports to markets in China India and Africa via the Caspian Sea one of their main hubs solanka Port has been heavily invested in since 2022 with irisl acquiring a majority stake this port serves as a vital link between Iran and Russia facilitating the exchange of essential Goods the astrion region in Russia particularly the solanka port is pivotal within the insc irisl has strategically invested in this area aiming to enhance trade accessibility for their vessels this move underscores Iran’s commitment to leveraging the insc for quicker and more cost-effective trade routes compared to traditional sea routes like the Suez Canal the in STC was initially proposed by Russia India and Iran to offer an alternative route to the Suez Canal ensuring faster delivery times and lower Transportation costs amidst Global geopolitical uncertainties transitioning container traffic from sea to rail along this Corridor could also significantly reduce greenhouse gas emissions aligning with environmental goals this Corridor integrates various transport modes including road Rail and sea along with specialized River sea vessels ensuring flexible and efficient cargo movement while China promotes routes like the afpac corridor and guad port in Pakistan through its cek initiative Iran offers a more direct and safer alternative this route bypasses geopolitical challenges in Afghanistan and Pakistan making it attractive for trade between central Asia Iran and Beyond despite China’s Investments in Pakistan’s ports Iran’s strategic advantages have prompted Beijing to also invest in Iranian infrastructure this highlights the growing significance of Iranian ports like chabahar in global trade Dynamics despite competing Regional initiatives Iran’s strategic positioning in the international north south transport Corridor insc and the Caspian Sea region serves as a counterweight to turkey’s influence in the area this route challeng challenges networks established by ankora and Western Powers aimed at limiting Russian influence Iran leverages its ports in the Caspian Sea special economic zones sezs free economic zones fez’s and its strategic access to both the Persian Gulf and Caspian Sea Waters to establish itself as a pivotal Hub in the insc and Regional networks compared to Pakistan and Afghanistan Iran is viewed as more stable and secure maintaining favorable diplomatic relations with India and China tyon actively positions itself as a key trading partner for many Central Asian countries benefiting from its stability and geopolitical positioning under President Rice’s Administration Iran has prioritized a look to the east policy and economic diplomacy fostering Regional cooperation and enhancing relations with neighboring countries this approach has significant boosted Iran’s appeal for investments from Eurasian stakeholders within the insc framework Iran and Russia have strengthened cooperation despite facing International sanctions their collaboration aims to reorganize Eurasian markets in a multi-polar manner the direct link between Russia and Iran provides Moscow with an alternative route bypassing potentially difficult relationships with Armenia and aeran improved relations between Iran and azerbijan are driven by shared economic interests and Joint infrastructure projects which could potentially reduce conflicts between the two Nations however lingering mistrust and geopolitical competition continue to influence their bilateral relations cautiously there is a convergence of interests between Iran and Russia in establishing a direct link with aeran playing a crucial role turkey’s efforts to strengthen its block and influence in the west particularly through baku’s significant gas reserves pose challenges for Iran turkey’s influence in Northern Iran where Turkish speaking populations advocate for secession is a concern for Tan’s ruling Elite especially considering turkey’s unpredictable Ally status moreover Iran remains wary of Israel’s presence in aeran president of Kazakhstan has highlighted the creation of a new transport Network for Eurasia unprecedented in previous developments for Iran this Corridor offers access to over 10 Russian cities along the river vulga with populations exceeding 1 million as well as connections to broader Central Asia and the Black Sea region this network helps Iran evade International isolation boost its National economy and attract Investments through its fez’s and sezs the Kazakhstan Turkmenistan Iran Railway all also known as the north south transnational Corridor is a major Railway line completed in 2014 this 677 km 421 meor long Railway connects Kazakhstan and Turkmenistan with Iran and the Persian Gulf facilitating trade and travel in the region the railway starts in usen Kazakhstan passes through baraket and rre in Turkmenistan and ends in Gorgon Iran once in Iran it links to the the National Railway Network which leads to the ports of the Persian Gulf this connection helps in moving Goods more efficiently from Central Asia to the Middle East and Beyond the entire project cost $620 million funded by the governments of Kazakhstan Turkmenistan and Iran the railway aims not only to move Goods but also to provide better passenger travel in the region it runs 137 km 85 mm in Kazakhstan 47 km 292 m in Turkmenistan and 70 km 43 m in Iran construction started in barette Turkmenistan in December 2007 and in Kazakhstan in July 2009 by May 2013 the barriet to usen section was completed in February 2014 another 256 kilm 159 in Mir section from baret to rre was constructed currently new Railway stations along this line are being built to support the infrastructure barette City formerly known as kazanji is a crucial Railway Crossroads connecting the trans Caspian Railway which links the Caspian Sea Turkmenistan usbekistan and Eastern Kazakhstan with the north south transnational Railway barette has a large locomotive repair Depot and modern passenger and Freight Railway stations making it a strategic point in the network the railway officially opened in December 2014 enhancing the connectivity between central Asia and the Middle East this new route provides a more efficient and cost effective way to transport goods and passengers boosting trade and economic development in the region the Armenia Iran Railway also known as the southern Armenia Railway or North South Railway Corridor is a proposed project to build a railway linking Armenia and Iran on July 28th 2012 a Dubai based company called raia fze was given the concession to handle the Project’s feasibility study design financing construction and operation the agreement allows Russia fze to operate the railway for 30 years with an option to extend for another 20 years this Railway is seen as a crucial Missing Link in the international north south transport Corridor which aims to connect the Black Sea to the Persian Gulf the proposed Railway would be 36 16 km 196 Mi long starting from gavar a town 50 km 30 Mi east of armenia’s capital yeran near Lake cvan and extending to the Iranian border near megri on January 24th 2013 during a press conference a tripartite memorandum of understanding was signed in yavan by Russia fze a subsidiary of Russian Railways called South Caucasus Railway and the government of Armenia this agreement focused on technical cooperation investment and the future operation of the Southern Armenia Railway Russia fze also appointed China Communications construction company as the lead developer for the project and began the feasibility study on September 3rd 2013 during a meeting with Armenian president Serge Saran Russian President Vladimir Putin stated that Russian Railways could invest about 15 billion rubles in developing The Armenian Railway in mid-september 2013 Russia fze made a significant announcement regarding the southern Armenia Railway project during a meeting with Armenian prime minister tigran Saran they shared the results of a feasibility study conducted by China Communications Construction Company the study was very positive and recommended a specific route for the railway this Railway part of the larger International north south transp Port Corridor is planned to run 305 km 190 M from gagaran to agarak in Armenia like share and subscribe to our channel for more videos like this

Welcome back to Glame!

In the turbulent landscape of the Middle East, tensions have reached a boiling point between Iran and Egypt, marking a significant escalation in their longstanding rivalry. The specter of conflict looms large as both nations engage in a complex dance of diplomacy, brinkmanship, and strategic maneuvering. While the exact catalyst for this latest confrontation remains elusive, geopolitical ambitions, regional power struggles, and ideological differences have all contributed to the deteriorating relationship between Tehran and Cairo.

As the situation unfolds, fears of open conflict have gripped the international community, with policymakers and analysts closely monitoring every development. The implications of a potential escalation are profound, with the possibility of destabilizing the entire region and exacerbating existing conflicts. In this volatile environment, the stakes are high, and the consequences of miscalculation could be dire.

However, the path to peace remains fraught with challenges, as entrenched interests and deep-seated animosities threaten to derail any attempts at reconciliation.

This is all about the prospect of yet another conflict underscores the urgent need for dialogue, de-escalation, and a commitment to finding peaceful solutions to the myriad challenges facing the Middle East.

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