In this piece, we will take a look at the 5 major shipping routes for global trade in 2023. For more routes, head on over to the 10 major shipping routes for global trade in 2023.
5. Dover Strait
The Dover Strait is the narrowest area of the English Channel, and while the strait is within the territorial waters of the UK and France, other ships are allowed to travel freely through the strait too. The strait is used mainly by ships moving between the Atlantic Ocean and North Sea, not to mention the Baltic Sea, making it one of the major shipping routes for global trade in 2023.
4. Strait of Hormuz
The Strait of Hormuz connects the Gulf of Oman and the Persian Gulf, and is one of the most important choke points in the world, not to mention one of the major shipping routes for global trade in 2023. Around a third of the total global natural gas and a quarter of global oil consumption passes through the strait, which is also where the U.S. and Iranian navies engage in skirmishes, with the latter accused of attempting to seize ships entering the strait.
3. Suez Canal
The Suez Canal became popular across the world after the ship Ever Given got stuck and cost over $10 billion in trade. From January 2024, the Suez Canal is increasing transit fees for ships, which will rise by nearly 15%. However, ships traveling from Far East to North Western Europe will be exempted from these rises in canal charges.
2. The English Channel
The English Channel is considered to be the busiest shipping route in the world, and lies between France and the UK. We’ve considered it separately from the Dover Strait as the strategic importance of both is unique to each other, and around 500 to 600 vessels traverse the Channel every day.
1. Panama Canal
The Panama Canal tops our list of the 10 major shipping routes for global trade in 2023. The Panama Canal revolutionized the global shipping industry construction was completed over a century ago and greatly reduced shipping times. By 2012, over 850,000 vessels had passed the route and according to the American Society of Civil Engineers, was declared to be one of the Seven Modern Wonders of the Word. In 2023, the Panama Canal was greatly impacted by droughts which significantly reduced water levels in the canal and the impact is expected to carry over to 2024, though container shipping is less likely to be impacted.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on 25 Best US Cities for Solo Female Travelers and 11 Best Cybersecurity Stocks Hedge Funds Are Buying.
