Transit Function Disruptions of the Panama and Suez Canals and their Impact on Global Shipping and Trade
Purpose: The main aim of the research is to identify and classify the various types of disruptions in the transit functions of the Suez and Panama Canals in the period 2023-2025/2026 as well as assessment their economic effects for global trade and shipping. The transport and logistics approach dominates, which the author considered appropriate for the analysis of the functioning of this type of strategic maritime infrastructure facilities of global importance. . Design/Methodology/Approach: To conduct this data-driven research, the following methods were applied: 1. critical literature analysis, 2 Data mining and analysis, 3. market analysis and 4. comparative analysis. Findings: The research findings indicate that limited or high-risk access to the Suez and Panama Canals during the period under review resulted in increased ship operating costs for maritime carriers due to extended ship routes (rerouting) and a corresponding increase in greenhouse gas emissions. Furthermore, significant supply chain disruptions resulted in increased global logistics costs and a simultaneous decline in the logistical efficiency of handling sea trade volumes. This resulted in significant increases in freight rates and other transport cost components, much of which was passed on to shippers and consumers. Practical Implications: The detailed research has shown: 1/ wide range of negative effects that occurred during the disruptions, and their distribution within the global supply chains, 2/ the effectiveness of shipowners’ strategies and operational management during the crisis. Originality/Value: The conducted research clearly indicates that any kind of disruptions in choke points of strategic importance for global shipping and trade such as the Panama and Suez Canals, generating rapid surge in global transport and logistics costs, should to be not only monitored but als smoothly managed by international organizations (WTO, IMO, UNCTAD, EC), while strictly coordinated with relevant representatives of the affected global maritime business sector. Otherwise any efforts can't bring the widely expected results.