Suez Canal: Better Service to the Shipping Industry

Posted by Michelle Howard
Friday, August 08, 2014
Photo courtesy of Suez Canal Authority

According to the U.S. Energy Information Agency, one of the world’s oil transit choke-points is the Suez Canal, the Panama Canal being another. However, the recently announced Suez Canal expansion plans are more likely to cater for containership transits, in strong competition with the expanding Panama Canal, rather than respond to the demand from oil tanker transits.

On Tuesday, August 5, 2014, the Egyptian President Abdel Fattah el-Sisi unveiled the project, which is bound to be a multiyear, multibillion dollar one.

Through widening and deepening operations over several years, the Suez Canal will be able to accommodate all ships except fully laden VLCCs. As far as we can tell, the expansion plans would allow for speedier transits.

Chief Shipping Analyst at BIMCO, Peter Sand, said, "The world has two giant canals in operation that are competing for the container shipping market handling imports into the US East Coast from the Far East. As the Panama Canal Expansion gets nearer its completion, the Suez canal starts to feel the heat and pressure to retain its superiority in handling the biggest ships in the World.”

The Suez Canal provides the shipping industry with a significant shortcut (saving seven days), when sailing from the Far East into Europe. In recent years, the drive in the container shipping industry towards lower costs per transported container has led to the introduction of larger and larger ships and subsequently also cascading of ships. This has resulted in Post-Panamax ships calling US East Coast ports via the Suez Canal.

“Suez will lose its exclusivity in large containership transits soon. A way to retain an edge in the market will be to improve your product. With Panama holding the upside on sailing distance by a small margin, the key parameters left will be fast transits and a competitive pricing of the service provided. In addition to that, the development of a larger transhipment hub to serve the East-Mediterranean and Black Sea market could increase the attractiveness of the Canal", adds Peter Sand.

 

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Seadrill: Rig Rates Have Not Bottomed

The market for oil and gas drilling rigs continues to deteriorate as oil companies cut back on investments, Seadrill Chief Financial Officer Rune Magnus Lundetrae

Kvichak, Vigor Announce Merger

Merger positions combined company to play a dominant role in recapitalization of North Pacific fishing fleet and emerging Arctic oil gas operations. Kvichak

'Governments Must Act to Save Thousands of Migrants'

The humanitarian crisis in the Mediterranean Sea is spiralling out of control. EU Member States must act urgently to prevent the loss of thousands more lives,

Energy

Seadrill: Rig Rates Have Not Bottomed

The market for oil and gas drilling rigs continues to deteriorate as oil companies cut back on investments, Seadrill Chief Financial Officer Rune Magnus Lundetrae

Ghana-Ivory Coast Maritime Dispute Mar Tullow

A dispute over maritime boundaries between Ghana and Ivory Coast is damaging Tullow Oil, which risks postponement of its TEN project in the waters off Ghana's coastline.

EC Study on LNG as Shipping Fuel Reveals Industry Backing

As efforts to combat climate change increase worldwide, pollution stemming from maritime shipping presents a particular challenge.     The study on the perception

Container Ships

Cosco Boxship Detained Over Illegal Arms

Colombian authorities detained a vessel operated by China's largest shipping group for illegally transporting thousands of cannon shells, about 100 tonnes of gunpowder

Rotterdam Port Receives Largest Box Ship

The MSC Oscar arrived on Tuesday (yesterday) at the APM1 terminal in Rotterdam. With a capacity of 19,224 TEU (20-foot containers), the 396 meters long and 59

Shipping Industry Faces Shake Up

As global shipping grapples with its worst downturn in 30 years, private equity firms are unwinding massive bets made on the sector in a move set to accelerate

News

Seadrill: Rig Rates Have Not Bottomed

The market for oil and gas drilling rigs continues to deteriorate as oil companies cut back on investments, Seadrill Chief Financial Officer Rune Magnus Lundetrae

Kvichak, Vigor Announce Merger

Merger positions combined company to play a dominant role in recapitalization of North Pacific fishing fleet and emerging Arctic oil gas operations. Kvichak

'Governments Must Act to Save Thousands of Migrants'

The humanitarian crisis in the Mediterranean Sea is spiralling out of control. EU Member States must act urgently to prevent the loss of thousands more lives,

Vessels

‘Blue Queen’ on First Mission

The platform supply vessel 'Blue Queen', an ULSTEIN PX121 design, was named at Ulstein Verft on Friday 27 February. The ship will be working in the spot market.

US, Australian, Indonesian Navies Commemorate Battle of Sunda Strait

Senior officials from the United States, Australia and Indonesia paid their respects to the crews of USS Houston (CA 30) and HMAS Perth (D 29) during a wreath laying ceremony March 1,

Rotterdam Port Receives Largest Box Ship

The MSC Oscar arrived on Tuesday (yesterday) at the APM1 terminal in Rotterdam. With a capacity of 19,224 TEU (20-foot containers), the 396 meters long and 59

Logistics

Seadrill: Rig Rates Have Not Bottomed

The market for oil and gas drilling rigs continues to deteriorate as oil companies cut back on investments, Seadrill Chief Financial Officer Rune Magnus Lundetrae

UAE Shipping Delegation to Meet with Greek Counterparts

A delegation of Middle East maritime heavyweights including H.E. Khamis Juma Buamim, chairman & group CEO Drydocks World and Maritime World and Rashid Mohammed Al Habsi,

First Ship to Load Soy at Tegram Bound for China

The first ship to load soybeans from the new Tegram terminal in the northeastern port of Ponta Madeira in Sao Luis, Brazil, will berth on March 10, local shipping agents Cargonave said on Tuesday.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.5572 sec (2 req/sec)