I think you've overestimating how much stuff an explosion removes, as opposed to breaks. Explosions are very good at making a functional thing not function anymore, but they're not as good as you think they are at evacuating an area.

Look at the aftermath of the Beirut explosion. The metal frame of the building the explosion happened in is still lying there.

The blast radius of an explosion scales with the cube root of the energy of the explosion. So if you want to make the hole twice as big, you need eight times as much explosives. To create a hole the size of a large container ship, you'll need a nuke. A pretty big one too. The Ever Given is 400m long, the crater left by the Trinity test (22kt) was 390m across.

Why not use a nuke?

Modern weapons can be very clean. :]

Because you still need to use the canal afterwards. And you need to convince the crews of the ships that the radiation won't be a problem. And the authorities of the ports they go to. And so on.

If Elon Musk solves this with some combination of space gadgetry and boring machines, we're going to have to declare him Earth Emperor.