Ocean carriers to make more use of Suez canal in transpacific networks

Several ocean carriers, including all members of the G6 alliance, plan to make increased use of the Suez canal and to focus less on the Panama canal in transpacific routes, according to reports in World Cargo News this week.

The increased use of Suez will allow carriers to use much larger vessels and thereby take advantage of improved economies of scale. The focus on reducing costs has gained especial importance since both the Panama and Suez canal authorities increased their tariffs this year. While more economical, the Suez route is longer and will entail greater transit times for most routes to China and North East Asia.

The G6 have said that the new strategy and the co-operaton between each of their members is great news for users of sea freight: "(it) enables is to offer an even more comprehensive and tightly meshed service network in this key trade with competitive transit times and increased sailing frequency. Each G6  member can now offer their clients a significantly increased range of port calls and numerous weekly departures", they said.

Source: World Cargo News