Posted on 05/11/2020 1:55:42 PM PDT by C19fan
The Suez Canal Authority (SCA) is set to lose over $10m in revenue from container lines routing vessels via the Cape of Good Hope rather than its waterway. According to new Alphaliner research, “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,” including at least 20 sailings on the Asia-Europe, Europe-Asia and North America east coast-Asia trades. “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 analyst noted today.
“Rather unusually, even three westbound Asia-Europe headhaul sailings have opted for the Cape route, all operated by CMA CGM.
(Excerpt) Read more at gcaptain.com ...
And also avoids the Somali pirates.
> The Suez Canal Authority (SCA) is set to lose over $10m in revenue... <
Will Pelosi demand that we bail out the Suez Canal Authority?
Just asking for a friend.
Egypt must really be gouging on fees.
Wrong canal.
My bad. I had the wrong canal.
Going thru the Suez Canal was one of my most exciting moments! LOVED IT!
“...a fully laden 20,000 teu container vessel on a headhaul Asia-Europe sailing could expect to pay around $700,000 in transit fees.”
That’s a whole lot of quarters to drop into that basket at the toll booth.
What I was thinking, as well.
$10 million sounds like a drop in the bucket compared to their operating budget. But if the trickle rises to a flood, there will be calls by Egypt for ruthless suppression of piracy. Money talks!
Somebody’s got to go back and get a shitload of dimes!
And deprives China of more revenue...
“Egypt must really be gouging on fees.”
Not really. As a business you make the max profit you can. The low cost of fuel today made it advantageous for ships to take the long way to Europe around The Cape.
The shippers made logical decisions. Egypt also made logical decisions by reducing transit fees.
THE FREE MARKET WORKS.
But that’s only 14-15 ships. Is the $10,000,000 loss per year, per month, per week, or per day?
???
What do you mean?
Something tells me it will be little more than 10mil.
Take the long way home...
Per the number of transits the ships skipped.
They lowered the transit rates enough to undercut the longer route.
Been there(E. Coast US to N. Indian Ocean) both ways, Suez is MUCH better(and FASTER)!
[Wrong canal.]
https://www.vox.com/2016/4/25/11503152/shipping-routes-map
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