By Mike Wackett

(The Loadstar) – The Suez Canal Authority (SCA) has reacted to the rising variety of backhaul voyages being routed to Asia through the Cape of Good Hope by providing cheaper tariffs.

The discount in transit charges follows studies that over 100 cargo vessels have chosen the longer route through the southern tip of Africa within the ultimate quarter of final 12 months, leading to a considerable lack of income for the Egyptian authorities.

The diversions had been additionally a blow to the authorities and personal buyers who contributed roughly $8bn in a 35km second channel that was anticipated to extend canal visitors.

A dramatic fall within the worth of heavy gas oil, from over $600 per tonne to beneath $150 over the previous two years, inspired ship operators to re-evaluate the price of the extra sea passage towards the price of canal transit.

For instance, a 13,000 teu containership voyage from North Europe to Asia through the Cape means including round 3,500 nautical miles and simply over per week. This equates to burning roughly an additional $180,000 of bunkers, which compares with canal charges of roughly $350,000, relying on the vessel’s load issue.

So far, Asia-Europe carriers have tended to route their ships through the Cape on an ad-hoc foundation – as an example, if the vessel’s subsequent headhaul voyage is to be blanked – however with carriers’ persevering with to wish to squeeze out extra prices, the diversion may improve in recognition.

However, this is able to additionally require the alliances to reconfigure their port calls – though with the groupings shortly to be realigned, together with a loop through the Cape stays a chance ought to each gas prices and freight charges stay low.

The Cape routing has proved much more widespread for backhaul voyages on Asia-US east coast companies. This entails round an extra 1,300 nautical miles, however the advantages of avoiding canal charges are appreciable.

According to Alphaliner, the Suez Canal Authority – compelled to attempt to win again this visitors – is now providing a 30% rebate on canal charges for ships from the North American Atlantic seaboard destined for Port Kelang, or different ports east of the Malay hub.

According to Alphaliner knowledge, there are at present six Asia-US east coast alliance companies now backhauling ships through the Cape fairly than through the canal, in addition to two US east coast/Caribbean companies beforehand returning through the Panama Canal.

Continued low gas costs and the viability of routing ships round southern Africa may additionally threaten the marketing strategy for the $5.3bn Panama Canal enlargement, now scheduled to open on 26 June, enabling containerships of as much as round 13,000 teu to transit the waterway.

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