- Consultant Sees Low Bunker Price Prompting Boxships to Dodge Suez and Panama.
- Owners would favour longer routes without the fees needed to traverse these chokepoints.
- Drop in boxship call would significantly cut bunker demand in Panama and Egypt.
- The new “freshwater charge” to add upto 30% to the cost of passing through the canal in 2020.
A container industry consultant says, the fall of bunker prices could prompt boxships to avoid the Suez and Panama canals, reports Ship & Bunker.
Why avoid Panama and Suez?
Chokepoint fee
Bishop owners would favour longer routes without the fees needed to traverse these chokepoints.
“There is a geniune risk for the Suez and Panama canals that container carriers will bypass them for some sailings and take the long route south around Africa back to Asia,” Lars Jensen, CEO of SeaIntelligence Consulting, wrote on his LinkedIn page this week.
Sped up and took long route
Carriers with more than 100 sailings in late 2015 and early 2016, sticking to the usual schedule, simply sped up and took the long way around Africa.
Cost efficient
“The low oil price meant that this was more cost-efficient.”
Low bunker demand
Such a huge drop in boxship call would significantly cut bunker demand in Panama and Egypt.
Adding to the cost advantages of this plan would be the benefit of avoiding the higher charges for traversing the Panama Canal this year.
Fresh water charge
The International Chamber of Shipping said, the new “freshwater charge” may add upto 30% to the cost of passing through the canal in 2020.
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Source: Ship & Bunker
