ENLARGEMENT of the Panama Canal has enabled
the Central American waterway to win back most of the all-water traffic between
Asia and the US East Coast that it had lost to the rival Suez Canal route.
The Panama Canal's share of the total headhaul
capacity on the route has risen to 74 per cent, the level it had in
2010, after slumping to 48 per cent at the beginning of 2016, according to Alphaliner.
The opening of the new locks in June 2016
shifted the advantage back to the Panama Canal as the larger neo-Panamax and
sub neo-Panamax ships, now able to transit, helped lift average vessel size to
the same as on the Suez route, the industry analyst says.
The Egyptian waterway has, however, retained the
headhaul and backhaul legs of five all-water services, while five services that
use the Panama Canal on the headhaul direction, return to Asia via the Suez
Canal, according to IHS Media.
The battle between the two waterways is continuing,
with the Panama Canal Authority planning to cut tariffs for neo-Panamax
vessels from October 1. However, the reductions are relatively modest, at only
6 to 12 per cent, and may not be sufficient to entice carriers to reroute their
backhaul services via the Panama Canal.
The Suez Canal Authority has also extended its 45 to
65 per cent rebates on toll tariffs for a further six months to the end of the
year, which should ensure it retains some of the traffic for the time being.
The Panama Canal tariff reductions will benefit the
nine existing services transiting the waterway on both legs with weekly savings
of up US$400,000 for the carriers, based on estimated weekly discounts of
$40,000 to $50,000 for each service.
Neo-Panamax ships, with 19 rows of containers, and
sub
neo-Panamax vessels, 16 to 18 rows, made 795 voyages, or 50.5 per cent
of all transits, through the expanded Panama Canal during its first year of
operations.
The number of 16- to 19-row container ships sailing
through the canal is likely to almost double in the coming year, with around
1,400 transits, Alphaliner said.
Fifteen weekly services currently transit the Panama
Canal of which nine make a return voyage, for a total of 24 passages.
At least two carriers are planning to launch new
Asia-US East Coast services next year, which could significantly increase
transits through the waterway, while five current trans-Panama services
deploying classic 13-row vessels of 4,000-5,100 TEU capacity could be up-sized
in the coming year, further boosting traffic of larger vessels.
Source : HKSG.