**Washington DC**: US President Donald Trump mandates free passage for American military and commercial vessels through the Panama and Suez Canals, linking the move to US historical influence and ongoing military actions against Houthis threatening Red Sea navigation.
US President Donald Trump has issued a decisive mandate calling for the immediate and free passage of American military and commercial vessels through the Panama and Suez Canals. The directive was conveyed through Trump’s Truth Social platform and tasked Secretary of State Marco Rubio with swift action to enact the policy. The announcement emphasises the United States’ historical involvement in the creation of these critical waterways and asserts the position that they should serve American interests without incurring transit fees.
Trump stated, “American Ships, both Military and Commercial, should be allowed to travel, free of charge, through the Panama and Suez Canals! These channels would not exist without US involvement.” This proclamation comes amid heightened US military operations targeting the Houthis, an Iran-backed rebel group in Yemen. The Houthis have been responsible for attacks on commercial vessels transiting the Red Sea near the Suez Canal as part of their campaign linked to the Gaza conflict. Their attacks have compelled rerouting of some maritime trade around the southern tip of Africa, resulting in shipping delays and increased costs globally.
The Panama and Suez Canals represent vital arteries of international trade. The Panama Canal is integral to commerce between the United States and Latin America, formed through US-led construction efforts, while the Suez Canal is a strategic conduit between Europe and Asia, previously accounting for about 10% of global maritime trade. The challenges faced by the Suez Canal are underscored by significant economic impacts on Egypt, whose canal revenues fell by 60% last year, amounting to an approximate $7 billion loss. The disruption has placed pressure on logistics companies, manufacturers, and retailers dependent on timely maritime supply chains.
Under Trump’s instructions, US military action against the Houthis has escalated notably, with active strikes occurring almost daily over the past month. Trump has committed to continuing operations aimed at neutralising the threat posed by the Houthis to maritime navigation. The intensification of military pressure could influence the security environment surrounding the Suez Canal and has raised discussions concerning potential long-term geopolitical consequences.
From an industry perspective, Trump’s proposal to eliminate canal tolls for American vessels could reduce operational costs and increase competitiveness for US shipping enterprises. Nonetheless, this initiative introduces potential tensions with Panama and Egypt, whose economies partly depend on revenues generated from canal passage fees. As Secretary Rubio progresses with the directive, various stakeholders in international logistics and trade are closely monitoring how this policy might alter the balance of control over these maritime trade routes.
The logistics community stands at a pivotal juncture, with global supply chains already facing strains. Developments stemming from this policy initiative could significantly influence future maritime commerce and international relations connected to these strategic canals. Further updates are anticipated as the situation evolves.
Source: Noah Wire Services
