How The Suez Canal Changed World Trade!
canals built by humans have completely changed how Goods move around the world by creating shorter routes and reducing costs one standout example is the Suz Canal the Suez Canal is one of the world’s most important and busiest Maritime passageway on the global stage its massive size and strategic location have transformed the shipping industry shaping the modern global economy let’s dive into the fascinating story of the Suez Canal and explore its historical and economic impacts [Music] the Suez Canal stretching 193 km links the Mediterranean Sea to the Red Sea connecting Europe and Asia without the need to navigate around Africa unlike the Panama Canal it operates with locks facilitating smooth passage for ships and allowing for potential future expansions this strategic Waterway has revolutionized Global Transportation before the Canal’s construction ships traveling between Europe and Asia typically took the long Route Around the Cape of Good Hope in Africa however with the Suz Canal the journey from Port Sudan to antalia Turkey spans only about 2,000 km compared to nearly 23,000 km without the canal while constructing such a a massive Canal posed challenges it wasn’t the first of its kind and certainly not the initial attempt at such a feat Pharaoh Neco II ruling Egypt from 609 to 593 BC envisioned a canal stretching from the PC branch of the Nile to the isus of Suz despite immense effort the project claimed many lives and didn’t last long however during tmy the second philadelphus Reign the canal was completed with a port established at Aro modern day Suz subsequent rulers maintained the Canal’s functionality with Emperor Tran restoring it during Roman rule in ’98 ad known as Tran’s Canal it connected the piac branch to the main Nile near Cairo and facilitated trade for about a century in the 7th Century ad under Arab rule Amar IB al-as reopened the canal on Calif Omar’s orders to transport wheat from the Nile Valley to Mecca however it was later blocked by Abasi khif Abu yaaar Abdullah al- mansur to quell rebellion in it seems these early canals were only navigable during the high Nile seasons for the rest of the year the water level dependent on the Nile was too low for ships to pass traces of these ancient canals were discovered by bonapart surveyors at the end of the 18th century and again 55 years later by Deep’s Engineers during their surveys although these early canals weren’t designed for marine communication between the Mediterranean and the Red Sea their existence inspired later generations over a thousand years later this knowledge fueled the ambition to build a canal connecting the two Seas the serious efforts to developed the Suez Canal began with the French expedition in 1798 Napoleon bonapart accompanied by a team of French scientists engineers and other experts formed the Institute Dey to study and modernize various aspects of Egyptian life among their projects was the Suez Canal bonapart personally explored the ismos of Suez with members of The Institute de and the commission deance desar he inspected the Anchorage at Suz explored the area between Suz and the bitter lakes and claimed to have found traces of the old T Canal Upon returning to Cairo he appointed engineer leair to conduct a detailed survey a big mistake happened during the survey of the Red Sea in the Mediterranean leair and his team thought the Red Sea was much higher than the Mediterranean at high tide but they were wrong this mistake affected Canal plans for 50 years making them think a direct Canal wouldn’t work they suggested using the old Tate Canal path instead connecting the Red Sea to the Mediterranean through the Nile in 1840 Len wrote a report based on Le’s wrong findings he thought the higher Red Sea Level would create a south to North current so he proposed a canal with locks and strong Banks to stop flooding lenot thought this direct route could be an alternative to the Nile route in the spring of 1847 three teams of Engineers from the sociated atude arrived in Egypt led by Talbot Stevenson and nelli Stevenson’s team investigated the Gulf of Suz Nell’s team the Bay of pelium and Talbot’s team the interior of the ismos they recommended a canal route from Alexandria to Suez via the Nile by 1851 dilps had contacted talbat Who provided information about the sociated tudes as work however dilps disagreed with their plan on two key points technically he believed that a canal via the Nile would be impractical due to the increasing size of oceangoing steam ships and advocated for a direct cut across the ismus politically he realized that securing Financial backing from European Banks would be difficult due to British opposition the Lep’s opportunity came in September 1854 when abas the vicroy of Egypt died and was succeeded by his uncle Muhammad SED an old friend of deeps during that time Mr mlan a renowned English engineer on the British commission proposed a plan that was seriously considered but ultimately rejected he suggested building High Banks along the canal and raising the water level to almost match these banks with locks at both ends to contain the water however this plan had obvious drawbacks the risk of the banks bursting water seeping through the sand and traffic disruption due to the lock operations in 1854 the Egyptian government granted a 99-year concession for the Suez Canal starting from its opening the concession included free land exempt from taxes and a profit sharing Arrangement 15% to the Egyptian government 10% to Founders and 75% to the company the company was allowed to exploit public mines and quaries without payment and import all necessary machinery and materials tax-free the 18 56 concession added more specifics the canal would be a direct route between the Red Sea and the Mediterranean a navigable freshwater Canal would connect the Nile with Lake timsa Running parallel to the main Canal deeps was to be the company president for the first 10 years after the Canal’s completion at least 80% of the construction workers had to be Egyptians the Egyptian government would provide all necessary public land tax-free for the canal and its Tendencies and the company would enjoy tax-free use of any public land cultivated due to its operations for the first 10 years construction of the Suez Canal began in 1859 at Port SED the Canal’s northernmost point it took a decade to complete with around 1.5 million people involved in the project unfortunately many of these workers were forced labor and it’s believed that tens of thousands died from diseases like chalera during construction political unrest in the region with Egypt under British and French rule further complicated the project rebellions against colonial rule added to the challenges combined with the technological limitations of the time these factors caused the construction cost to Skyrocket to $100 million equivalent to about $1.5 billion in today’s money more than double the initial estimate Ismael Pasha Civ of Egypt and Sudan officially opened the Suez Canal on November 17th 1869 the first ship through was the Imperial yacht legel followed by the British liner Delta however the British Navy ship HMS Newport actually sneaked in first the night before with Captain George Nars at the helm despite being scolded officially Nars was secretly praised by Britain for advancing their interests the SS Dao was the inaugural vessel to pass through from south to North initially only steam ships could navigate due to tricky winds despite slow traffic at first the now soon transformed world trade and played a big role in Africa’s colonization by European powers in 1875 facing Financial struggles amid its rapid Industrial Development Egypt sold the cives shares in the Suez Canal to Britain this transaction granted Britain the majority share cementing joint British French control over the canal for the next seven decades however this increasing European dominance stirred discontent among proud Egyptians by the the early 1880s frustrations reached a boiling point leading to an uprising spearheaded by urabi Pasha pro- orabi riots erupted in Alexandria resulting in casualties among Europeans and widespread Looting of their properties in response the Royal Navy bombarded the city and General Sir Garnet wolley’s expeditionary Force landed to confront urabi pasha’s Rebels the pivotal Battle of Tel Kabir in 1882 saw British forces decisively defeating Arabi pasha’s Army determined to safeguard this vital communication route Britain took decisive steps they installed a client kiv stationed British troops across the country and assumed control of key government departments as well as the police and army despite Egypt nominally remaining part of the Ottoman Empire British influence became pervasive the country in essence operated under British Authority after after World War I Britain gave Egypt Independence in 1922 but still held on to Sudan in the Canal Zone British troops stayed in Egypt and important Army and police roles were filled by Brits in 1936 King faruko took the throne at 16 and that same year Britain and Egypt agreed that British troops would gradually leave with the Canal Zone being the focus the plan was for British forces to go down to 10,000 by 1956 and Egyptians would control their army and police for the first time in decades the treaty had two important conditions firstly in case of War Britain could station troops in Egypt to safeguard the Suz Canal secondly the angl French Canal company would operate the canal until 1968 these Provisions along with the continued presence of the British Garrison in the Canal Zone fueled resentment among Egyptian nationalists when World War II erupted Britain invoked the treaty Clause stationing troops across Egypt to counter Italian and German threats to the Suez Canal this move was deemed necessary for strategic reasons given the Canal’s importance the pivotal Battle of el alamain fought in Egypt marked a turning point for the Allied Forces in North Africa after the war British troops were withdrawn to the Canal Zone maintaining a presence in the region as the 1950s began Egyptian resentment against British presence in the can Zone grew stronger terrorist attacks targeting British soldiers fueled tensions with each side blaming the other for the violence in January 1952 suspicions of police involvement LED British forces to take action they sealed off ismia and stormed a police barracks leading to the deaths of around 40 officers these events triggered violent riots in Cairo with British properties attacked and Nationals killed by July 1952 King faroo was overthrown in a coup Paving the way for nasser’s rise to power by 1954 initially despite strained relations there was a degree of cooperation between Naser and the British aiming to replace the corrupt faruko regime eventually negotiations led to an agreement for the British to leave the Canal Zone by June 1956 tensions between British troops and Egyptian nationalists seemed to ease and Nasser optimistically spoke of a new era of positive relations between the two Nations however this new new found optimism quickly evaporated as nassa embarked on an ambitious agenda to modernize Egypt with the construction of a colossal Dam on the Nile at Aswan as the Lynch pin of his plans in early 1956 Nasser successfully secured a significant financial commitment from the World Bank for the Aswan Dam project amounting to $200 million however this funding was contingent upon additional contributions from the United States and the United Kingdom totaling $70 million initially things appeared to be progressing smoothly yet complications arose when NASA recognized the geopolitical tensions between the US and the USSR particularly the American fear of Soviet influence in the Middle East sensing an opportunity to leverage these tensions to his Advantage Nasser sought to play the superpowers off against each other his decision to purchase arms from Czechoslovakia a member of the Soviet Le War saw packed sent alarm bells ringing in Washington in response the Americans retaliated by withdrawing their support for the dam project convincing the British to follow suit with the crucial funding and Jeopardy the World Bank also withdrew its Financial backing however rather than capitulate to Western pressure Nasser defiantly announced the nationalization of the Suz Canal on July 26th 1956 stunning The International Community and further escalating tensions in the region nasser’s bold move to seize our Canal as he termed it directly violated the treaty he had negotiated with the British just 2 years earlier however he viewed it as a necessary risk to finance Egypt’s economic modernization he calculated that within 5 years the canal tolls would cover the cost of the Aswan Dam Egyptian forces swiftly moved into the Canal Zone capitalizing on the absence of British troops who had departed ahead of schedule in March British prime minister Anthony Eden was insens by the seizure viewing it as a direct threat to Britain’s economic interests for Eden the sez Canal held immense strategic importance as the primary route for half of Britain’s oil imports he also saw the seizure as an assault on Britain’s prestige in the Middle East if Arab Nations could seize British assets in Egypt it raised concerns about the vulnerability of Britain’s allies particularly the monarchies in Iraq and Jordan Eden’s impression of Nasser soured following their meeting in early 1955 adding to his apprehensions about the Egyptian leaders intentions and actions Anthony Eden took office as prime minister in 1955 after Winston Churchill retired Eden had previously served as foreign secretary during World War II where he skillfully managed diplomatic relations with Britain’s allies he was instrumental in negotiating West Germany’s entry into nato in the 1950s Eden had long desired the prime minister’s role and finally achieved it when Churchill stepped down at a formal dinner Eden wore his military cross earned during World War One however Colonel Nasser lacking such decorations interpreted this as a deliberate insult relations deteriorated further when Nasser felt patronized by Eden’s fluent Arabic perceiving British superiority over Egyptians Eden in turn viewed Nasser as both ambitious and dangerous having built his political career opposing appeasement in the 1930s Eden saw parallels between Nasser and figures like Hitler or musolini he feared naser’s Ambitions to dominate the Arab world believing that unchecked it could lead to dire consequences this personal animosity profoundly influenced both men’s actions moving forward Eden attributed every setback in the Middle East to Nasser viewing him as a looming threat akin to Hitler however such a perspective was flawed and overly generous while Nasser did encourage anti-british sentiments he mainly capitalized on the wave of nationalism rather than instigating events himself alongside personal animosity and an appeasement shaped mindset Eden’s decisions were further clouded by heavy medication following a botched surgery seeking assistance Eden turned to the Americans but Eisenhower wary of potential conflict in an election year urged caution Eden however saw delaying action as merely postponing greater problems leading him to seek support elsewhere finding willing allies Eden turned to the French who had vested interest in the Suez Canal as majority shareholders additionally French prime minister guy molette harbored resentment toward Nasser the French had been embroiled in a bitter conflict with Algerian nationalists whom nasar’s Egyptian radio had supported further fueling tensions in North Africa molet believed that removing Nasser would weaken the Algerian Rebels the British and French agreed that Nasser needed to be ousted and the Suz Canal restored to their control they devised a plan codenamed operation musketeer to achieve this the primary goal was to topple Nasser and reassert control over the canal this would require a military operation against Egypt involving 880,000 British and French troops the Royal Navy would provide air support with three aircraft carriers HMS eagle bullwark and albian while two others HMS Theus and ocean would transport troops ashore using Westland Whirlwind helicopters a tactic being employed for the first time initially the plan was to land at Alexandria Lieutenant General Sir Hugh Stockwell commanding the British French Ground Force intended to use tanks to advance towards Cairo Engage The Egyptian Military in a decisive battle capture the capital remove Nasser and secure the canal however a shortage of landing craft forced Supreme Commander General Sir Charles keatley to change the plan instead of landing at Alexandria the assault would now take place at Port SED at the Northern end of the Suz Canal the British and French forces would then push South to seize control of the canal there would be no Advance on Cairo Paris and London hoped that even this limited success might topple Nasser however they didn’t consider How likely this was or who might replace him there was a significant issue with operation musketeer legitimacy Naser had nationalized the Suez Canal but was that enough to justify an invasion after all the canal was supposed to pass into Egyptian control in 1968 anyway moreover Nasser had promised to compensate shareholders based on the value of their stocks before the seizure an invasion even a limited one seemed excessive and difficult for the International Community to accept the French proposed a solution involving a third Ally Israel the plan was cunning if Israel invaded Egypt Britain and France could step in not as Invaders but as peacekeepers protecting International Trade Israel eagerly joined fueled by its own conflicts with Egypt like closed shipping routs and attacks on settlers nassar’s anti-zionist stance left Israel feeling threatened so they saw this as a chance to strengthen Security on October 22nd the trio agreed to act together but Eden insisted on secrecy to avoid upsetting Arab relations a week later Israel launched a large offensive in Sinai the British and French then called for a ceasefire aiming to protect the canal if fighting continued as per their plan the British and French called on both sides to ceasefire and withdraw 10 miles from the canal creating a demilitarized zone as the Egyptians fought the Israelis far east of the canal retreating 125 Mi through their own land and then 10 Mi across the canal wasn’t something Nasser would agree to the French and British knew this but used it as an excuse for aggression the Egyptians refused and blocked the canal with sunken ships on October 31st 1956 RAF bombers hit Egyptian airfields wiping out much of their Air Force with air dominance the RAF Target military positions up north SE Venom bombers from aircraft carriers joined in the ground operation began on November 5th paratroopers secured elg Airfield but faced tough resistance advancing into Port sad French paratroopers landed in the South while Royal Marines and tanks landed north of Port SED Egyptians defended fiercely using strong points and snipers despite challenges the British and French forces pushed forward linking up in port s and heading South toward Suez however diplomatic efforts were crumbling amidst the military Advance their slender veil of legitimacy arriving as peacekeepers fooled no one the UN General Assembly quickly passed a motion calling for a ceasefire with only Australia and New Zealand siding with Britain Soviet leader Nikita kusov threatened to send missiles against London and Paris seizing the opportunity to act as a friend to Egypt and draw Nasser into his orbit this threat also conveniently diverted attention from Soviet troops crushing an anti-communist uprising in Hungary the American response however caught Eden by surprise President Eisenhower feeling deliberately kept out of the loop was outraged the unilateral actions of Britain and France in collaboration with Israel threatened the US strategy of forming an anti-communist Block in the Middle East in an unprecedented move the USA joined the USSR in voting against theuk UK and France at the general assembly the British French and Israelis found themselves isolated the Americans then tightened the screws threatening to sell their Sterling bonds causing the pound to plummet and sparking economic panic in Britain Arab countries imposed an oil embargo on Britain and France and when the British turned to the Americans for oil Eisenhower refused to supply it on credit the US pressured the international monetary fund to deny financial assistance to Britain and France unless they agreed to a ceasefire by midnight on November 6th facing the threat of Soviet missiles economic meltdown International isolation and a Highly Questionable intervention in Egypt British public opinion was deeply divided 30,000 people demonstrated in Trafalgar Square against military action the largest demonstration in the capital since before the second world war the labor party opposed the government and within Eden’s party there was a split between those who supported the action and those who doubted it despite some military success the Global Response overshadowed any gains while Britain aimed to control the canal the economic Outlook was Dire Eden had to call for a ceasefire on November 6th just after British and French troops captured elcap the ceasefire marked the end of the Suez Crisis leaving British troops feeling let down and humiliated un peacekeepers arrived and by Christmas British troops had left Egypt casualties were high on all sides and the reasons for the intervention failed Nasser stayed in power gaining popularity and Egypt regained control of the canal with un support far from calming the Revolt in Algeria the Suez Crisis made Nasser a hero to algerians within 6 years Algeria gained its independence Britain’s Prestige especially in the Middle East plummeted nationalists felt emboldened and Britain’s allies in the region began to seek support elsewhere just two years after Suez king fisel of Iraq a key British Ally was overthrown the failure of the Suez Venture confirmed that Britain although a Victor in World War II was no longer on par with the USA or the Soviet Union any future UK operations would need American support and approval prime minister Eden was forced to resign in early 1957 and was succeeded by Harold McMillan the Suez Crisis showed McMillan that Britain could no longer conduct Imperial operations requiring a conscripted Army under his leadership national service was wound down and Britain’s Empire began to dissolve by the time McMillan left office in 1963 half of Britain’s African colonies as well as Malaysia Jamaica and Trinidad and Tobago had gained independence the Suz crisis pushed Naser closer to the Soviets Who provided military hardware and financial support for his Awan Dam project ironically one of the key reasons Eisenhower opposed the British and French operation in Suz was to prevent Soviet influence in the Middle East in the end the USA despite turning its back on its NATO allies still lost influence to the Soviets while the world focused on Suz and the West Was divided kusov crushed the Hungarian Uprising with impunity far from being toppled Gamal Nasser emerged from the Suz crisis as a hero in Egypt and an icon to nationalists Across the Middle East Africa and Asia he remained in power until his death 14 years later ironically the man whose star fell as nasser’s Rose Anthony Eden outlived his Nemesis by 7 years dying in 1977 however his reputation never recovered from the humiliation of the Suz crisis in today’s world the Suez Canal remains a vital artery for global trade connecting Asia and Europe each year around 20,000 ships navigate through it carrying about 12% of all Goods traded worldwide that’s a lot of everyday items on average 50 ships cross the canal daily transporting 3 to9 billions dollar worth of cargo but it’s not just about quantity it’s also about what’s on board about 10% of the world’s oil and 8% of natural gas pass through the canal making disruptions to its operations significant for the global economy a few years back the everg given ship got stuck in the sewer Canal due to unusually strong winds it took 6 days to free her causing a massive traffic jam of about 500 vessels and costing the canal Authority nearly $900 million in Damages but the Ripple effects were even more staggering the Canal’s closure for less than a week led to billions of dollars in damages to the global economy late deliveries of everyday items Fuel and materials created a wave of problems that took months to fix the Suez Canal is under the the management and operation of the Egyptian government overseen by the Suez Canal Authority and its yearly revenue is approximately 5 billion thanks for watching Remember to hit the like button and subscribe if you enjoyed this video you’ll love the one showing on your screen click it and I’ll see you there [Music]
Discover the incredible story behind the Suez Canal, a marvel of engineering that has reshaped global trade and geopolitics. In this video, we delve into the canal’s history, from its ambitious construction in the 19th century to its pivotal role in modern commerce. Learn how this strategic waterway shortened the sea route between Europe and Asia, boosting economic growth and influencing international relations. Join us as we explore the canal’s lasting impact on shipping, trade, and global power dynamics. Don’t forget to like, comment, and subscribe for more fascinating insights into the world’s most transformative infrastructures!
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