Shippers would not face drastic changes to service frequencies on the Asia-north Europe trade from shipping lines if the Suez Canal closed suddenly, according to research by Drewry.
In its latest research note, the shipping consultant said container lines would need to increase vessel speeds to 22 knots on Asia-Europe trade services from average speeds of 19 knots westbound and 14.8 knots eastbound to maintain frequencies if services diverted around the Cape of Good Hope.
Shippers would not face drastic changes to service frequencies on the Asia-north Europe trade from shipping lines if the Suez Canal closed suddenly, according to research by Drewry.
In its latest research note, the shipping consultant said container lines would need to increase vessel speeds to 22 knots on Asia-Europe trade services from average speeds of 19 knots westbound and 14.8 knots eastbound to maintain frequencies if services diverted around the Cape of Good Hope.
This would also leave a safety margin as ships operating on the trade lane have a top speed of 24-25 knots.
However, this is where the good news ends for shippers.
Although the overall transit time for a complete rotation from Asia to Europe and back would remain roughly the same — 54.5 days via the Suez Canal, against 56.8 days via the Cape of Good Hope for a 13,000 teu vessel — the transit time from Asia to north Europe would increase from 22.1 days via the Suez Canal to 28.4 days via the Cape of Good Hope.
Carriers would also probably increase prices to take into account the extra fuel consumption for an increased sailing distance of just under 8,500 miles and for increased speeds to maintain frequencies.
This cost would be offset slightly, as carriers would not need to pay Suez Canal dues, which Drewry estimates to total $1.4 million per round trip journey for a 13,000 teu vessel.
“After taking into account the saving made by avoiding Suez transits, shippers would have to pay an extra westbound and eastbound deviation surcharge of around $58 per teu and $222 per teu respectively — assuming Intermediate Fuel Oil price of $630 per tonne — although ocean carriers would probably want to distribute this [between the two directions] more evenly.”
There would be further problems, too, for shippers that require Asia-Mediterranean services.
“Schedules operating from the Far East to Mediterranean would be more difficult to maintain, due to having to enter the Mediterranean via the strait of Gibraltar instead of Suez.
“However, assuming port rotations were adjusted accordingly, and some transhipment, services could still be maintained via the Cape with the same number of vessels.”
Drewry estimates that 8,000 teu vessels would incur a westbound and eastbound deviation surcharge of approximately $137 per teu and $339 per teu respectively.
The research was published following an increase in the likelihood of the Suez Canal closing as a result of political unrest in Egypt, Drewry said.
Eco-friendly NYK Coal Carrier Honored as 2012 Ship of the Year
Soyo, an NYK-owned coal carrier, has been selected as the 2012 “Ship of the Year” by the Japan Society of Naval Architects and Ocean Engineers (JASNAOE). An awards ceremony was held on July 25, and Mitsuhiko Sunouchi, the general manager of NYK’s Technical Group was presented with the recognition by JASNAOE.
JASNAOE’s “Ship of the Year” award has been presented every year since 1990 to a Japan-built vessel that the society considers to be the most technically advanced, well-designed, and socially conscious. The NYK Group’s cruise ship Crystal Harmony (current name: Asuka II) received the society’s first “Ship of the Year” award in 1990, and NYK-Hinode Line Ltd.’s two module carriers Yamatai and Yamato were recognized with special awards in 2010.
Soyo was honored for its innovative air-lubrication system and its proven impact on CO2 reduction. This new air-lubrication system reduces CO2 emissions by taking some of the main engine scavenging air (combustion air) from the main engine’s turbocharger and leading it to the vessel’s bottom to reduce the frictional resistance between the vessel’s bottom and the seawater. A system featuring this scavenging air bypass is expected to be effective in reducing CO2 on large vessels having deep drafts.
Yamatai and Yamato have similar air-lubrication systems, and were actually the world’s first vessels involved in overseas transport to have such a system permanently installed. The NYK Group is currently looking to equip car carriers with this eco-friendly system.
The system was jointly developed by NYK, Oshima Shipbuilding Co. Ltd., and the Monohakobi Technology Institute, an NYK Group company, in cooperation with the National Maritime Research Institute. System development was subsidized through Japan’s Ministry of Land, Infrastructure, Transport and Tourism’s “Support for Technology Development from Marine Vessels for Curtailing CO2” project, among others.
The NYK Group will continue to encourage initiatives that address climate change by striving to install this system on other types of vessels.
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