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The busiest shipping lanes in the world

The conflict in Iran has brought shipping traffic to a halt in the Strait of Hormuz, a key corridor for global trade. This disruption has highlighted the world’s reliance on this strategic sea route and the vulnerabilities it creates for the global economy. Here we explore some of the busiest and most important shipping lanes in the world.

Strait of Hormuz

A quarter of the world’s oil passes through the Strait of Hormuz– the narrow waterway between the Persian Gulf and the Gulf of Oman – making it one of the most important trade routes globally.

The Strait of Hormuz has an extremely narrow chokepoint, with designated inbound and outbound lanes.

As the conflict in Iran continues, the strait has been the subject of numerous headlines. Tanker traffic has been interrupted following attacks on vessels in the Persian Gulf.

Even small disruptions to the supply chains could have a significant effect on prices. Around one month into the conflict, consumers are starting to feel the impact. Fuel prices have already significantly increased in the UK.

The Suez Canal

Located in Egypt, the Suez Canal connects the Mediterranean Sea to the Red Sea. In 2023, this canal recorded a daily average of 72 vessels, while last year this daily average declined to around 35 ships2.

The Suez Canal is extremely narrow, with its single lane sections periodically causing queues.

While the Strait of Hormuz dominates global oil transport, the Suez Canal handles a higher share of manufactured goods from Asia to Europe. Any disruptions to this route could have a major effect on retail prices.

This was the case five years ago, when the Suez Canal was blocked for six days by a stranded vessel.

The incident halted hundred of ships, exposing the vulnerability of global trade. It delayed cargo worth around $10 billion per day3.

The English Channel

The English Channel is busiest shipping lane in the world – far busier than the Suez Canal and the Strait of Hormuz combined.

The Channel links the UK and France, has hundreds of ports along the coast and handles all types of cargo such as food, fuel and other goods.

The Malacca Strait

The Malacca Strait is the main shipping route between the Indian Ocean and the Pacific Ocean, situated between Indonesia’s Sumatra Island, the Strait of Singapore and the South China Sea.

Because it is one of the narrowest deepwater channels in the world, shallow waters limit the size of the passing vessels.

Oil from the Persian Gulf crossing this corridor makes it one of the busiest shipping lanes in the world. Roughly a quarter of global oil supply passes through this strait.

The Panama Canal

At just 51 miles long, the Panama Canal replaces a journey of several thousand miles around Cape Horn, dramatically reducing shipping time and costs.

The canal uses a lock system, meaning that vessel movement is extremely tight. Lock systems increase the risk of bottlenecks and delays.

In the past few years, water shortages across the Panama Canal have reduced traffic capacity and caused delays.

The role of shipping

These routes are the backbone of global trade and each of these lanes face different vulnerabilities.

While the Strait of Hormuz is more exposed to geopolitical tension, the Suez Canal is more sensitive to accidents and bottlenecks due to its width, while the Panama Canal is prone to climate-driven drought.

The different challenges to which various shipping lanes are exposed make the global supply chain more able to absorb any shocks or disruptions. However, the effects of small interruptions across a single route could still ripple across supply chains and reach consumers quickly.

The location of these routes highlights how distant events, such as the conflict in Iran or the blockage in the Suez Canal, can quickly find their way into household budgets.

Sources

1International Energy Agency – February 2026
2Suez Canal Authority – accessed April 2026
3Review of Maritime Transport 2024, UN Trade & Development – accessed April 2026

SJP Approved 01/04/2026

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