materials

1. WELCOME TO BACC7
International Business and Trade
4:00-5:00PM
Regular Class Conference
Class Rules:
1. Open Cam, Close Mic
2. For concerns, please raise
hands (@zoom) to be
recognized
3. Say your greeting with our
visitors via chat box

2. 8 IMPORTANT TRADE ROUTES
Part 2- Modern Trade Routes

3. • In shipping, Sea passages are either natural or
artificial ocean lanes that serve as link between
major ocean passages/trade routes.One major
significance of these passages is that they are
limited in size when compared in size to the open
oceans they link to.

4. 1. THE DOVER STRAIT
• The Dover Strait is the world’s busiest shipping lane.
500-600 ships a day pass through the narrow strait
between the UK and France. Cargoes include oil from
the Middle-East to European ports, and various
commodities from North and South America to
European customers. In 1999, 1.4 billion tonnes gross,
carried by 62,500 vessels passed through the Dover
Strait.

5. • Strait of Dover, French Pas de Calais, Latin Gallicum
Fretum, narrow water passage
separating England (northwest) from France (southeast)
and connecting the English Channel (southwest) with
the North Sea (northeast). The strait is 18 to 25 miles (30 to
40 km) wide, and its depth ranges from 120 to 180 feet (35
to 55 metres). Until the comparatively recent geologic past
(c. 5000 BCE), the strait was an exposed river valley, thus
making England an extension of the European continent.
Because of the prevailing winds, the main flow of water
through the strait is from the southwest, but a persistent
northeast wind can reverse the current. The white cliffs on
the British side, composed of soft chalk, are receding
because of erosion. Although the strait is one of the world’s
busiest seaways, a strict system of traffic lanes and
navigation information became mandatory only in 1977.

7. 2. STRAIT OF MALACCA
• Strait of Malacca, which is a narrow passage off the
Malaysian Peninsula, handles more traffic (vessels),
but less tonnage than the Dover Strait.
• The Straits of Malacca and Singapore is one of the
most important shipping waterways in the world from
both an economic and a strategic perspective. It is the
shortest shipping channel between the Indian Ocean
and the Pacific Ocean, linking major economies such as
Middle East, China, Japan, and South Korea.

9. 3. STRAIT OF HORMUZ
• Strait of Hormuz is the strait between the Persian Gulf and the
Gulf of Oman. It provides the only sea passage from the
Persian Gulf to the Arabian Sea. It holds a strategic importance
in global crude oil shipment industry. For example in 2011, an
average of 14 tankers per day passed out of the Persian Gulf
through the Strait carrying 17 million barrels (2,700,000 m3) of
crude oil. This represented about 35% of the world’s seaborne
oil shipments and 20% of international oil trade. More than 85%
of these oil exports were shipped to Asian markets, with China,
Japan, India and South Korea being the largest destination.

10. • The Strait of Hormuz is the world's single
most important oil passageway, forming a
chokepoint between the Arabian Gulf and the Gulf
of Oman. The 39km strait is the only route to the
open ocean for over one-sixth of global oil
production and one-third of the world's liquified
natural gas (LNG).

12. 4. SUEZ CANAL
• Suez Canal is an artificial sea-level waterway in Egypt,
connecting the Mediterranean Sea and the Red Sea. It
allows ship transport between Europe and eastern Asia
without navigation around the Horn of Africa. The canal
is 193.30 km (120.11 mi) long, 24 m (79 ft) deep and
205 meters (673 ft) wide as of 2010. It consists of the
northern access channel of 22 km (14 mi), the canal
itself of 162.25 km (100.82 mi) and the southern access
channel of 9 km (5.6 mi).

13. • The Suez Canal is important because it is the shortest maritime
route from Europe to Asia. Prior to its construction, ships
headed toward Asia had to embark on an arduous journey
around the Cape of Good Hope at the southern tip of Africa.
Because of its strategic location, the canal is both heavily used
and heavily protected.
• The Suez Canal is a man-made waterway connecting the
Mediterranean Sea to the Indian Ocean via the Red Sea. It
enables a more direct route for shipping between Europe and
Asia, effectively allowing for passage from the North Atlantic to
the Indian Ocean without having to circumnavigate the African
continent.

15.  Suez Canal handles about 8 percent of world trade.
 The Gulf of Aden and Suez Canal are the main trade
routes for dry commodities and containerized cargo —
manufactured goods — between Asia, Europe and the
Americas.
 The Suez Canal is the third major source of income for
Egypt.
 About 30% of Europe’s oil imports passes through the
canal.
 2012 revenue worth around $5.13 billion as a result of the
passage of 17,252 ships with a total cargo of 932.43 million
tons.

16.  2011 revenue worth around $5.222.700 billion as a result of the
passage of 17,407 ships with a total cargo of 924.947 million
tons.
 Importance & Advantages of the Canal
 It is the shortest marine link between the east and the west due
to its unique geographic location; it is an important international
navigation canal linking between the Mediterranean sea at Port
Said and the red sea at Suez.
 It accommodates the partially loaded VLCCs (Very Large
Crude Carriers and ULCCs (Ultra Large Crude Carriers).

17. 5. THE PANAMA CANAL
• Panama Canal is an artificial sea passage in Panama that links
the Atlantic Ocean with the Pacific Ocean. The canal is uniquely
made up of series of Canal locks and gates which connects to
an artificial lake. The lake which 26m (85ft) above sea level is
created to reduce the volume of excavation work that would
have been done if the connecting water channel was
constructed at sea level. The pre-2016 the size of vessels the
canal can accommodate is known as Panamax. With the
expansion work that was completed in 2016 the canal can
accommodate vessels that are designated as neo-Panamax in
size.

19. 6. THE ARTIC ROUTE (North
Strait Route) NSR
• Artic Route is an emerging shipping route in the Artic Ocean,
north of Russia has been opened up by global warming. This
route cuts thousands of kilometres (miles) — and many days —
off the journey from China to its key European market.

20.  The journey through the Artics takes about two weeks faster
than through the Suez Canal.
 The route is open for about four months in a year. Global
warming might increase this window and make the route more
accessible.
 The route will slash shipping times, thus cutting costs and fuel
consumption.
• According to a study from the Copenhagen Business School,
the Arctic Route has the potential to bypass the Panama Canal
and cut the time of voyages between Asia and Europe by 40%.

22. END OF PART 2