Vessels willing to go the distance to avoid Suez canal tariffs
Egyptian authorities, who recently inaugurated the East Port Said side channel of the Suez Canal project, say they’re not concerned by reports of vessels using alternate routes.
CAIRO — The new Suez Canal is feeling the pain of low oil prices, but authorities say major development plans associated with the canal will not be affected by a temporary decline in traffic.
On Feb. 24, Egyptian Council of Ministers President Sherif Ismail inaugurated the new side channel of East Port Said. Suez Canal Authority chief Adm. Mohab Mamish emphasized the channel’s importance in facilitating ships’ passage to and from the port, and thus its importance to the Suez Canal Area Development Project, which includes the development of six ports.
The channel in the Mediterranean and Red Sea is 9.5 kilometers (6 miles) long and 18 meters (60 feet) deep and was dredged over three months.
In conjunction with the channel’s inauguration, SeaIntel Maritime Analysis issued a report confirming that since October, 115 cargo vessels sailing from Asia to northern Europe and the US East Coast chose to take the long way home. The vessels sailed around South Africa on their return journey, skipping the Suez and Panama canals. In light of the global oil slump, vessels can afford to take the scenic route and avoid costly canal tariffs.
