Suez Overtaking Panama Canal on Asia-U.S. East Coast Route

The current average size of ships along the Suez is 7,500 TEU, versus 4,500 TEU on the Panama Canal.

Carriers are increasingly making the switch to the Suez Canal from the Panama Canal for key Asia-U.S. East Coast routes, according to Drewry. 

Between October 2013 and October 2014, the Suez Canal had increased its share of total Asia-US East Coast all-water ship capacity from to 52 percent from 44 percent, according to a report released this week.

In the report, Drewry noted that there was a "worrying development" of carriers shipping from Hong Kong and Southern China choosing the Suez Canal route, despite the Panama Canal holding the shorter distance. 

Historically, activity in the Suez has been driven by trade from the Middle East, India and South East Asia. 

It was speculated that Chinese production moving to lower-labour countries such as Vietnam and Bangladesh may have been a driver, in addition to the much larger size of Suez route allowing for substantially larger ships. 

The current average size of ships along the Suez is 7,500 TEU, versus 4,500 TEU on the Panama Canal. 

Drewry said that a current surplus of 8,000 TEU post-Panamax vessels has made the Suez the more attractive option, though it predicted that traffic would likely revert back to the newly enlarged Panama Canal once it finishes construction in 2016. 

The switch however, will also depend on the Panama's canal tolls, which have not been announced.

The new canal will allow ships of up to 13,000 TEU to traverse its waters. 

Officials said earlier this summer that the canal will run on schedule in 2016 despite construction having seen numerous delays over the past few years.