INTERNATIONA

L TRADE
ROUTES
AN ANALYSIS BY BUDDY GROUP 5
AAYUSH MATHUR D001
ANANYA MOHATA D008
ISHIKA AGRAWAL D023
NAOMI PAREKH D036
RAGHAV SINGHAL D043
 INTRODUCTION

1 2 3
DEFINITION THE IMPORTANCE RELEVANT EXAMPLES
A route, usually covering long Raising living standards through Northern Sea Route
distances, taken by people buying and access to choices resulting in Suez Canal
selling goods across land or sea. economic growth and urban prosperity India-Middle East-Europe
Corridor
TRADE ROUTES IN DISCUSSION

01 INTRODUCTION
04 INDIA-MIDDLE EAST-EUROPE
ECONOMIC CORRIDOR

02 THE TRADITIONAL
ROUTE 05 A COMPARISON

03 THE NORTHERN SEA

ROUTE
06 CONCLUSION
THE TRADITIONAL
ROUTE
• Back in the 19th century, the British took control of Egypt and instituted a
French engineer, Ferdinand de Lesseps for the construction of Suez canal in
1859.
• The 193km Suez canal was opened on 17 November 1869 and remains the
fastest and most direct maritime trade link between Asia and Europe.
 KEY
STATIS
TICS
 KEY FEATURES
AND BENEFITS

1 2 3 4
GLOBAL CONNECTIVITY INFLUENCE ON ENERGY IMPACT ON GLOBAL CHECKPOINT FOR
& SHIPPING SHORTCUT MARKETS SUPPLY CHAINS SECURITY
CONCERNS

Facilitates trade and trade route Important for the transportation of Suez Canal blockage can lead to The Suez Canal Authority oversees
diversification; a crucial shortcut for energy resources. It transfers an shortages of critical components, the canal operations with the aim to
ships traveling between Europe and estimated 7-10% of the world’s oil impacting manufacturing and maintain its security and
Asia. and 8% of LNG. distribution processes. functionality.
THE SUEZ
CANAL CRISIS
OF 2021
• On 23 March 2021, The Ever Given, a massive vessel became lodged sideways in the
canal due to poor visibility and strong winds.
• An estimated 450 vessels were halted in or at either end of the canal waiting to transit.
• The Ever Given was finally dislodged after six days, and trade along the Suez canal
has subsequently resumed.
• Egypt compounded the Ever Given, requesting compensation of USD $900 million
for lost revenue and costs.
THE
NORTHERN
SEA ROUTE
INDIA-MIDDLE EAST-EUROPE ECONOMIC
CORRIDOR
 INDIA-MIDDLE EAST-EUROPE
ECONOMIC CORRIDOR
IMEEC is proposed to counter the Belt and Road Initiative proposed by
China

Initial estimates suggest that developing each of these IMEC routes

could cost anywhere between $3 billion to $8 billion

Many of the details are still being ironed out, and multiple route options
are being considered that will include ports

Source: Twitter
 INDIA-MIDDLE EAST-EUROPE ECONOMIC
CORRIDOR
DISCRETE BETS...

• India becoming more of a manufacturing economy, with rising exports as well as energy needs.

2. The Saudi and UAE/Gulf economies transforming into a sustainable post-oil prosperity, with state-incubated
investments in new megacities that become centres of Finance, technology and innovation.

3. Europe's strength as an innovation and manufacturing hub (Germany, Italy), with its quest for diversified and
trusted non-China partners.
 LET’S COMPARE THE
ROUTES
DISTANCE FROM TRAVEL
ASIA TO EUROPE TIME
• SUEZ CANAL : reduce the travel time by
• SUEZ CANAL : 193kms, shortest maritime approximately 7-10 days.
route.
• NORTHERN SEA ROUTE : highly dependent
• NORTHERN SEA ROUTE : can be on ice conditions, which can be unpredictable.
significantly shorter than the Suez Canal,
depeneding on the route. • IMEC : depends on the specific route, mode of
transportation, and potential delays at border
• IMEC : a land-based route, generally longer crossings.
than the canal routes.
COST OF SAFETY
SHIPPING
• SUEZ CANAL : based on a toll system, and
fees can be substantial for larger vessels.
• SUEZ CANAL : historically safe and reliable,
prone to geopolitical tensions and occasional
closures.
• NORTHERN SEA ROUTE : can be expensive,
due to the need for icebreaker support in certain • NORTHERN SEA ROUTE : can be riskier due
months. to the potential for ice-related incidents.

• IMEC : depends on factors like fuel prices, road • IMEC : may be more predictable in terms of
and rail infrastructure, customs fees. safety compared to the sea routes.
 CONCLUSION
THE BEST IN THEIR OWN WAYS

NOTHERN SEA THE SUEZ INDIA-MIDDLE

ROUTE CANAL EAST- EUROPE
CORRIDOR
THANK YOU!