Constraints in Access to Strategic Shipping Passages and their Impact on Canals‘ Authorities and the Affected Economies
Purpose: The aim of the research is to assess the direct and indirect effects of disruptions caused by various constraints in access to strategically most important for the world shipping transit passages, i.e. the Suez and Panama Canals. The economic, financial and social consequences concern not only global shipping operators, shippers and other logistics companies, but olso canals managing and administering entities and the economies directly affected by the effects of the crisis. Design/Methodology/Approach: To conduct this data-driven research, there were applied: 1. critical literature analysis, 2 Data mining and analysis, 3. Factor analysis and 4. comparative analysis. Findings: Long lasted constraints in access to chokepoints, strategic for global shipping and trade generated numerous negative effects for many sectors of the global economy. Apart from the significant surge in shipping operating costs as a result of necessary rerouting and consequently, increase in greenhouse gas emissions, they caused severe supply chain disruptions such as port congestions, increase in delivery time and costs what resulted in serious decline in the logistical efficiency of handling sea trade volumes. Growing transport and logistics cost were passed on to shippers and consumers of goods transported by sea, stimulating inflationary presse in many countries. Moreover, the was a significant drop in revenues and earnings of the Suez Canal managing entity, affecting the Egyptian economy and limiting budgetary incoms and the dynamic of GDP’s growth. Howeverhowever, in the case of the Panama Canal, such effects did not occur. Practical Implications: The disruptions in the transit functions of the Suez and Panama Canals that have occurred since 2023, indicate that the maritime business sector managed the risk and crisis better than its global regulatory sphere. The last one was unable to ensure safe navigation or even ease main negative effect. Therefore, the global transport regulatory system should be more supportive in solving current perturbations of this nature. Originality/Value: The research has demonstrated that the global strategic maritime infrastructure facilities are particularly vulnerable to all geopolitical conflicts and natural disasters and susceptible to strong disturbances that generate huge disruptions within all links of the global supply chains, affecting numerous negative effects in the global economy.