Maritime Trade: The backbone of the modern world.

In the light of recent events regarding the Strait of Hormuz, the vital importance of maritime trade has never been clearer. The globalized world has brought humanity innumerable advantages regarding communication, accessibility, quality of life, and opportunities, but the idea that all that is sustained by the safety and sustainability of maritime transit is mind-blowing. Above all, it raises some important questions regarding global dependency and sustainability,

Since last month, oil prices have surged exponentially due to the ongoing military conflict in the Middle East. The closing of the Strait of Hormuz marks the disruption of around 25% of the world’s oil transit, with gas prices being directly affected, and in the long run, energy prices and every single commodity might get more expensive than it is today. However, it’s not the only global point that carries such impact. Straits like Suez, Panama, and Malacca are “maritime highways”; around 60% of global maritime traffic passes through straits and important strategic locations, with hundreds of ships going through them daily. They are indispensable to our society; however, they present themselves as the world’s “Achilles’ heel,” due to their vulnerability and devastating impact. Another major constraint happened in 2021, in the Suez Canal in Egypt, where a container ship blocked the canal and forced its closure for a week. Each hour it was blocked generated a loss of 400 million dollars, according to Lloyd’s List.

In addition, it’s not only military conflicts and accidents that impose threats to maritime transit. Climate change has also contributed to changes in the global supply chain. One example of it is the Panama Canal. The country has been suffering with long droughts in the last couple of years, with a major one in 2023 and 2024, which conditioned the normal transit in Gatun Lake, part of the Central American canal. The number of ships allowed to cross was reduced and many others were forced to reroute around South America, increasing costs and delaying shipments. However, new opportunities are also emerging. The melting Arctic ice opens the highly seasonal and unpredictable Northern Sea Route, which can cut transit time between East Asia and Western Europe by up to 40%, though it remains highly controversial.

Speaking of environmental impacts, the international shipping industry is responsible for 3% of global gas emissions. Governments and international organizations have pushed for efforts to turn the world’s most polluting transport network into a sustainable and environmentally friendly one. This growing awareness has created “green corridors,” specific shipping routes between major hubs where sustainable fuel alternatives and carbon-free technologies are used to decarbonize shipping. These initiatives are only possible due to the cooperation between governments, shipping companies, and tech conglomerates, with new technologies being tested to help governing entities achieve net-zero targets. Yet the widespread use of this method is unlikely to be feasible soon, since green corridors are far more expensive for both companies and ports, posing a great challenge to scale up these kinds of initiatives.

Maritime transit is an often overlooked, but essential part of the modern world, due to its enormous scale and indispensable value. However, it is highly susceptible to threats and constraints, which makes global entities more aware of this when problems emerge. It forces governments to look for alternatives in order to regain control of their supply chains and reduce dependency on countries that can use them as a bargaining chip.