Cheaper Bunkers Help Panama Canal Reclaim Capacity Share

by Ship & Bunker News Team
Friday July 17, 2015

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. 

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

The figures are reportedly down from the Panama Canal's more prosperous days in 2010, when the seaway held a 74 percent share, though the numbers are still higher than February earlier this year, when capacity share fell to 44 percent

The route also reportedly makes up 34 percent of the total trans-Pacific capacity from the Far East, compared to 30 percent a year ago. 

The figures reportedly come in spite of the fact that the Suez Canal can handle larger vessels, and will soon be able to handle even wider vessels after the new expansion opens. 

Last month, it was reported that Egyptian officials expect the widened Suez Canal to open August 6,2015.