Lines boost Suez services to extend market reach

Despite being overshadowed by the so-called "newcomer on the block", Vietnam, with an export potential to far outweigh any of the Asia-United States trade stalwarts, China is retaining its number one slot on a trade lane that is increasingly developing its various conduits.


The top three lines, Maersk, Mediterranean Shipping Co (MSC) and CMA-CGM have all expanded existing services using the Suez Canal transit option, giving them the possibility to deploy vessels well into the post-panamax capacity frame to cover the US East Coast trade potential.


The Suez routing, al-though against the general trend in recent years of using the Panama Canal, does not have too much of an adverse effect on transit times compared with the more conventional route, and importantly, the Suez route offers several different trade conduit options through the Indian sub-continent, Middle East and Mediterranean markets.


Recognising the Suez potential, MSC has in the last six months, upgraded its Golden Gate service covering the Far East-Middle East-Mediterranean-US East Coast trade with a complete fleet of 8,000+ TEU vessels offering an 84-day round voyage taking in multi-trade conduits.


CMA CGM, as a vessel provider on the jointly-operated Columbus Service/TP9/TP3 service with Maersk using the Suez Canal routing option, has also upgraded capacity on the service to vessels in the 8,500 TEU category.


The French line had previously deployed vessels of around 6,500 TEU capacity on the service that covers the Far East-US East Coast and Far East-US West Coast trades on a pendulum service.


Interestingly, ports such as Savannah on the US East Coast are included as direct calls on 15 of the existing 16 all-water services through the Panama Canal, but the Georgia Ports Authority-operated port is also attracting more custom through the Suez.
During March, Savannah will feature as a main call on the newly-launched AWE6 service to be tonnaged by Cosco, Yang Ming and Hanjin with 5,500 TEU vessels.


While port coverage of the new AW6 service will include a Vietnam call at Vung Tau, the China trade concentration will also focus on the central and southern regions with direct calls at Xiamen, Hong Kong and Yantian, and offer additional trade conduits westbound with direct calls at Colombo, and eastbound at Jeddah.


Even with the impending widening of the Panama Canal, the trade option via the Suez will without doubt have far more trade potential.


Savannah port sources confirm that China-US East Coast volumes are up 14 percent from this time last year, and vessels sailing on the route are running at 90 to 95 percent full.
Ships are expected to continue operating with almost full capacity through February, which in terms of post-Chinese New Year, is unusual.


On the China-US West Coast trade, capacity utilisation is around 80 to 85 percent, and there is a continuing belief that the West Coast has lost some volume to the US East Coast. But that loss has been definitely wiped out by a growth in demand on the China-US trade lane.


The West Coast may have lost volumes to the East Coast, but the West Coast ports have made up that loss and more, by an ever increasing market demand.


The volume increase is not just being seen through ports such as Savannah, there are others whose names are not always related to container trades showing up in the China league.


Up at Baltimore in Maryland, sources confirm China import volumes have grown almost 40 percent with the addition of a new direct port call on the MSC Golden Gate service.


The port is expanding its Seagirt container terminal from three to four berths and four new gantry cranes from China are due to be installed shortly.


As the eventual Panama Canal widening will obviously attract more trade volume and capacity potential for all ports on the US East Coast, the real factor is that with market demand growing on a monthly rate, container lines are not prepared to sit back and wait for the big day in Panama.


The Suez potential is there, it is real, and it has at least four years head start in attracting new customers on the Panama option.
The widening of the Panama Canal will double its capacity by 2014 by allowing more and larger ships to transit.
(source:http://en.portnews.ru)