PIPSA PANAMA SLUDGE REPORT

PIPSA Sludge Report Header 102015

JULY 2015

World Ship Traffic
Ship traffic using the Panama Canal is quite an important statistic for PIPSA’s business. The high volume of ships using the canal to transit from either the Atlantic or Pacific Oceans was a key factor in locating PIPSA’s business in Panama. As far as Container Ship traffic the Panama Canal is once again the preferred route for the world’s major container ship owners when they need to transport cargo between the Far East and the US East Coast.

Numerous major liner carriers are currently racing to be in the best possible position for the new and expanded Panama Canal.

The most highly traveled origination and destination routes using the Panama Canal where; Asia-US East Coast, East Coast US -Asia, East Coast US-West Coast South America, Europe-West Coast South America, South America Intercostal, Europe-West Coast US/ Canada.

The most numerous vessels that transited the canal by vessel type were;

1)    Container Vessels

2)    Dry Bulk Vessels

3)    Tankers

4)    Vehicle Carriers

5)    Refrigerated Cargo Vessels

6)    General Cargo Vessels

7)    Passenger Cruise Liners

The highest ranking four individual countries where cargo originated from or had cargo delivered as the final destination that use the Panama Canal  were; the United States, China, Chile, and Japan respectively.

 

Panama Canal in Massive Suez Traffic Steal

20 Jul 2015    Cargo Volumes and Throughput, Container Handling, Containers, Environment , Going Places, Port Planning, Ports, Shipping

Panama Canal in Massive Suez Traffic Steal. Source: iStock

The Panama Canal has re-claimed the majority of traffic from the Far East and the US East Coast (USEC) all-water route that it previously lost to the Suez Canal in late 2014, the Journal of Commerce reported Alphaliner as saying.

This news comes after the recent announcement that the USEC could steal as much as 10% of the Panama Canal’s traffic.

Panama’s waterway currently accounts for 51% of the total capacity on the all-water trade route, up from 44% in February, 2015.

Watch the June update of the Panama Canal

Andy Lane of CTI Consultancy said: “The two canals (Panama and Suez) do not really compete directly for the same liner service – the choice is always based on minimising the total voyage distance. The scale of canals also does not drive cargo flows or deployment, when the difference is maybe 12,000 TEU versus 14,000 TEU where the slot cost synergies are minimal.

“It is however fair to say that massive variations in scale do make a difference – a 4,500 TEU service through the present Panama is far less efficient than a 10,000 TEU service through Suez (typical Asia-USEC) even if the overall distance is a little longer.”

A 20% year-on-year increase has been recorded for weekly capacity along the route to a record high of 143,000 TEU in June, 2015.

The Panama Canal now accounts for 34% of total trans-Pacific capacity from the Far East compared to 12 months ago when capacity was recorded at 30%.

The Panama Canal is costing around US$5 billion to complete and will be operational by early 2016.

 

Cheaper bunkers help Panama Canal Reclaim Capacity Share
By www.shipandbunker.com

Low bunker prices have allowed the Panama Canal to reclaim much of the Far East to U.S. East coast seabourne traffic that it had originally lost to the Suez Canal late last year, JOC reports.

According to reports, too many Panamax container ships, a shorter steaming distance, and cheaper bunkers have prompted the switch back to the Panama route.PIPSA Ship in locks generic

According to Alphaliner, the canal currently accounts for 51 percent of total capacity, with weekly capacity having reportedly risen 20 percent year-over-year in June to 143,000 TEUs.

Click here to read more…

 

 

Panama Canal expansion to boost China-Americas trade
By www.hellenicshippingnews.com

Panama Canal’s expansion project, which is expected to be completed in 2016, will boost the Chinese shipping industry and trade between China and the Americas, experts said in recent interviews with Xinhua.

The 80 km Panama Canal, which was completed and opened in 1914, has been serving as a “world bridge,” connecting the Pacific and Atlantic cutting down the overall distance by as much as 10,000 km between the two oceans. The canal currently accounts for 5 percent of global trade volume, which mostly involves trade between Asia and the Americas, according to the Panama Canal Authority (ACP).

International trading and the shipping industry have undergone drastic changes in the past century, and over half of the world’s freighters are too big to go along the Panama Canal.

Click here to read more…

If you have any questions regarding this newsletter, please contact me at misetich@pipsa.com

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