From Quartz:
Political
violence in Egypt has the world anxious about the country’s future, but
few businesses are concerned about the Suez Canal, the 120 mile passage
between the Red Sea and the Mediterranean.
Lloyds of London, which insures ships transiting the canal, says it is not worried about safety or operation, although maritime insurer Skuld is warning ship’s crews to be cautious, especially if they go ashore.
That’s
not to say there are no issues. The curfew instituted as part of the
country’s emergency law has restricted port operations in the evening,
and oil prices have risen slightly risen over concerns about delays in
the canal to $110 a barrel, still below a winter peak of $118. About 3%
of the world’s oil supply, or 2.5 million barrels, goes through the canal every day; about 8% of global trade transits the canal.
Insurers
aren’t just confident because the canal is supposed to remain open in
time of war. The Suez is just too important to Egypt’s economy for the
military government—or any other that may come to power—to allow it to
close. The military has made the canal’s security a top priority.
Revenues from the canal contributed $2.4 billion
to the country’s economy in the first half of this year, and typically
provides about 10% of the country’s hard currency. Earlier this year,
Egypt’s currency reserves fell below $10 billion....MORE
