In an effort to keep container vessels transiting its waterway the Suez Canal Authority has cut its vessel transit rates, by up to 75% for some ships.
A number of vessel owners have taken advantage of the low cost of bunker fuel, the price of which has fallen following the collapse of crude oil prices earlier this year. By sending ships around the African Cape owners can save Suez Canal charges and use vessel capacity which would otherwise be idle.
Simon Heaney senior manager, container research at Drewry Shipping Consultants told Container News, last week, that the, “More savvy shipping lines are also achieving capacity cuts through routing vessels around the South African coast, using more fuel, but fuel costs have also substantially diminished in recent weeks.”
Heaney went on to say that even though the trip is longer the lines are “awash” with capacity so adding an extra vessel to maintain the weekly frequency will allow the lines to use up some spare capacity.
Vessels heading east from the EC North America will obtain a 75% discount, while ships from North Europe, Algeciras and Tangiers will receive a more modest 17% cut. Other vessels operating out of Northwest Europe will be offered a 6% cut in fees. All reductions will be applied from 1 May to 30 June.
Nick Savvides
Managing Editor
