Suez Canal Set to Lose $10 Million from Ships Taking the Long Route

Suez Canal Set to Lose $10 Million from Ships Taking the Long Route

Suez Canal Set to Lose $10 Million from Ships Taking the Long Route

The Loadstar

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May 6, 2020

Suez Canal Set to Lose $10 Million from Ships Taking the Long Route
A freight ship is seen going across via the New Suez Canal throughout a trial run of the New Suez Canal, July 25, 2015. Photo: REUTERS/Stringer

By Gavin van Marle (The Loadstar) The Suez Canal Authority (SCA) is readied to shed over $10m in earnings from container lines directing vessels using the Cape of Good Hope as opposed to its river.

According to brand-new Alphaliner study, “the number of containerships that have opted to use the Cape route and bypass the Suez Canal has risen to a historic peace-time high,” consisting of a minimum of 20 cruisings on the Asia-Europe, Europe-Asia and also North America eastern coastline-Asia professions.

“A unique combination of a container tonnage surplus and rock-bottom bunker prices has increasingly prompted ocean carriers to avoid the canal – and thus its fees,” the expert kept in mind today.

“Rather abnormally, also 3 westbound Asia-Europe headhaul cruisings have actually gone with the Cape course, all run by CMA CGM.

“Carriers very rarely choose this longer route for the time-sensitive headhaul, but the low bunker price and lack of demand in European markets, hit by the Covid-19 lockdowns, have suddenly made such moves viable,” it included.

As well as the 3 Ocean Alliance westbound cruisings– 2 on the FAL3 solution and also one on the FAL1– Alphaliner tracked 9 Europe-Asia and also 8 North America eastern coastline-Asia backhaul cruisings preventing Suez with vessels run by Evergreen, MSC, ONE and also Cosco.

Suez Canal fees differ according to the dimension of the vessel, its routeing, the variety of containers brought and also the percentage of loaded boxes, yet generally of thumb, a completely loaded 20,000 teu container vessel on a headhaul Asia-Europe cruising can anticipate to pay around $700,000 en route costs.

The range distinction in between both courses is around 3,500 kilometres on Singapore-Rotterdam cruising.

In reaction to the steps, the CAVITY has actually revealed cuts in transportation costs, differing from around 17% for ships associated with European professions, to 60% -75% for vessels going back to Asia from the eastern coastline of North America.

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