As global trade continues to grow, the Suez Canal remains the primary conduit for Asia-Europe maritime trade, handling 12% of global cargo and 30% of container traffic. However, its strategic monopoly faces challenges due to rising security threats, congestion, high transit fees, and occasional disruptions like the 2021 Ever Given incident. These factors have sparked interest in identifying and utilizing alternative routes to mitigate risks and optimize costs. This study aims to comparatively analyze all the alternative routes to the Suez Canal Route (SCR), including the Cape Route (CR), Northern Sea Route (NSR), Trans-Siberian Route (TSR), China-Europe Railways Express (CRE), International North-South Transport Corridor (INSTC), and the recent India-Middle-Europe Economic Corridor (IMEEC). The comparison involves an examination of each route’s prices, costs, distances, advantages, disadvantages, and economic and political implications. Findings underscore that, despite the growing appeal for alternative routes, none currently matches the SCR's cost-effectiveness and established infrastructure for the Asia-Europe trade. Alternatives are primarily supplementary, offering diversification during disruptions but lacking the capacity to displace the Suez Canal as the dominant trade route. Furthermore, geopolitical factors, such as tensions in the Middle East and sanctions against Russia, significantly impact the viability of several routes. This research contributes to the study of global supply chains and the development of trade routes for global maritime and overland transportation. The findings are intended to inform the readers of broader discussion on transportation and logistics by providing a comprehensive, up-to-date analysis of all major trade alternatives. It highlights the enduring importance of maritime transportation while advocating investment in emerging alternatives to ensure global trade security in the face of evolving geopolitical and environmental challenges.
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Chien Yu
Bridgewater State University
Yaoxuanzi Xiao
Soochow University
International Journal of Business & Management Studies
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Yu et al. (Tue,) studied this question.
synapsesocial.com/papers/68d4759931b076d99fa6db3e — DOI: https://doi.org/10.56734/ijbms.v6n9a11