A Step by Cargo Ships Could Save Them a Fortune

Posted by Alisa Barron
2
Travel & Tourism
Mar 14, 2016
297 Views
Image According to a New Report, Cargo Vessels are Taking Long Way Round Africa to Avoid the Costly Tariffs of the Panama and Suez Canals, Thanks To the Recent Reduction of Oil Prices

SeaIntel is the maritime trade analysis company which has recently released a report which shows that 116 cargo ships have sailed around South Africa on their way back after transporting goods via sea shipping to Africa, North Europe and the United States east coast. Since October last year, they have not used a canal, and all of this was made possible due to the recent decrease in oil prices.

North European Cargo Route
North European Cargo Route

The report has also found that lower fuel prices have enabled the cargo ships to take longer route at a faster speed, avoiding the costly tariffs of Panama and Suez canals, and still being able to finish the journey at the same time as with the canals.

Cargo Ship in Suez Canal Cargo Ship in Suez Canal

The cash-strapped carriers would be saving on average $235,000 per voyage by using the South Africa route, which is undoubtedly a huge boost, said SeaIntel. This is absolutely a bad, in face a very bad sign for the Panama and Sues canals as the carriers could also make further saving if they move some of the intermediate calls to other services. Cargo to Africa offers door to port sea shipping services to Africa at affordable prices, you can call at +442031434372.

$8.5 Billion Has Been Spent By Egypt on the Expansion of the Suez Canal:

Just last year, Egypt has spent $8.5 billion on the expansion of the canal to reduce transit time through the Suez Canal by allowing two lanes of traffic. The Suez Canal Authority reported that in 2015, with 17,483 ships passing through the canal the number of ships increased by 2 percent. On the other hand, the number of bulk carries fell around 5.7 percent and container ships fell 3.1 percent.

Expansion of Suez Canal Expansion of Suez Canal

Every vessel that sails from Asia to the East Coast using Suez Canal pays $465,000 on average for passage, thus they are highly valuable for the canal. “If the canals want to change the economics of the routing choices, the Panama Canal would need to cut prices by roughly 30 percent, while the Suez Canal would need a cut of roughly 50 percent,” added SeaIntel in their report.

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