Of late, the Panama Canal is running dry and water is at critically low level for the waterway to operate. The lack of rain due to the El Nino phenomenon has resulted in the second driest season in the canal's 110 year history. [read BBC here].
According to IMF blog, Panama Canal saw trade fell by 32% in the early part of 2024. Larger still is Suez Canal, by 50%. Since late December 2023, Suez Canal and Red Sea are under threat. Houthi rebels from Yemen attacked ships in response Israel's bombardment of Gaza and so-called retaliation to Hamas rocket attacks.
Ships were diverted through the Cape of Good Hope and it added 6,000 nautical miles to journey. Situation may worsen with Israel seemed destined to attack Hezbollah in Lebanon and the possible confrontation with Iran.
If that is not problematic enough for international trade, the Straits of Melaka recently faced a massive congestion.
Read on in Thick as a Brick HERE.
Malaysia should seek for area of cooperation with Thailand on the planned Kra landbridge.
If the current occurance on the Straits of Malacca becomes a permanent phenomenon, an alternative to Singapore, Penang and Klang ports is imminent. The landbridge serve to relieve the congestion at the Straits of Malacca and offer a new East-West sea route.
New trade routes are springing up everywhere. Ports are springing up in Kyaukpyu, Myanmar and Gwardar port, Pakistan as part of the BRI. Already India and Russia is building the 7,200 kilometre International North-South Transport Corridor.
In 2018, Turkey unveiled a controversial plan to build the Kanal Istanbul, the second route between the Black Sea and Sea of Marmara to relieve the busy Bhosphorus Straits. The project is already on-going.
Even Israel have a Ben Gurion canal plan as alternative to the Suez Canal. Follow the money to track the motivation for the Gaza genocide.
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