In recent days we have witnessed several changes at a global level, from economic and political adjustments to modifications in routes, goods and quotas. Some aspects of international logistics have changed since much of what we knew just a few months ago is now different. The rivalry between the Suez Canal and Cape Good Hope probably sounds unlikely but given the current circumstances, it could be a possibility. It is logical to contemplate cost reduction, which is why shipping companies around the world have taken this eventuality very seriously.
The Suez Canal, an international strategic point
It is one of the most valuable sites in terms of logistics since it is commonly used to cross from Europe to Asia and vice versa; During previous weeks, restrictions in European ports, the lack of exchange of goods and the reduction in fuel costs have caused the canal's prominence to be affected.
According to the Suez Canal Authority (SAC), it faces a loss of 10 million in income as a result of the detour that the shipping companies make towards Cape Good Hope; Due to the current fuel situation, it is feasible to carry out longer trips around the entire African continent to cross the Cape since the Suez Canal toll can reach USD 500,000 for a single large ship, commented Rolf Habben Jansen, CEO of Hapag-Lloyd.
Cape Good Hope at highs
El Cabo has reached a historic point by reporting nearly 20 trips between; Asia-Europe, Europe-Asia and the east coast of North America and Asia. Therefore, those who wish to import or export using the mentioned routes must take precautions regarding the increase in P/E delivery time. For its part, the Suez Canal has initiated a series of changes to counteract this situation. Although rates vary according to the size of the vessel, its route and the number of TEUS transported. Cuts in transit rates have also been announced that seek to generate an increase in flow in the canal; At the same time, it is expected that this change will also contribute to reducing the environmental impact that greater fuel consumption is causing.
It is therefore important to have an important ally to identify the best route according to the objectives of each company. Therefore, APR Cargo Group presents itself as a freight forwarder with experience and results that can provide you with the solutions you need according to your needs.