The return of container services to the Suez Canal is accelerating cargo flows from India to the Port of Savannah.
The return of selected container services to the Suez Canal is accelerating cargo flows from India to the Port of Savannah by 10 to 14 days, giving importers faster inventory replenishment and potentially lowering inventory-carrying costs, Georgia Ports Authority officials said.
Maersk (OTC: AMKBY) has shifted its MECL service from the longer Cape of Good Hope route back through the Suez Canal, reducing transit time from Nhava Sheva, India, to Savannah to 28 days, according to the carrier’s service information. The Maersk Denver became the carrier’s first new westbound sailing through the canal when it called Savannah on Aug. 9.
The Copenhagen-based carrier also added an eastbound call at Jeddah, Saudi Arabia, to the MECL service as it resumed Red Sea transits.
CMA CGM is likewise returning its Indamex service to the Suez Canal. The French carrier’s shift is expected to trim five days from the Nhava Sheva-to-Savannah transit and allow the service to maintain weekly frequency with two fewer vessels.
“Georgia Ports welcomes the transit time improvements as several major carriers return to Suez routings linking Georgia to world markets,” Georgia Ports President Kevin Price said.
The routing changes reflect a broader, gradual return by carriers to the Red Sea and Suez Canal after many services had diverted around Africa because of security risks in the region. The Cape of Good Hope diversion added substantial distance, time and vessel capacity requirements to Asia-Europe, India-U.S. East Coast and other trade lanes.
Mediterranean Shipping Co. has announced plans to restore Suez Canal routings in both directions on four Asia-Europe and Mediterranean services — Tiger, Albatross, Himalaya Express and Jade. MSC said removing the Africa detour would allow each service to operate with two fewer vessels, increasing global container ship capacity available to the market.
For cargo owners sourcing from India, South Asia and Southeast Asia, the shorter voyages could improve forecast accuracy and reduce the amount of inventory required to protect against longer and less predictable ocean lead times. Port officials said the gains are particularly relevant for companies that have invested in diversifying production away from China and into India and other manufacturing locations across the Indian subcontinent and Southeast Asia.
“We are glad to see ocean carriers resuming Red Sea transits using the Suez Canal, the fastest and most economical way to link Asia, South and Southeast Asia and the Middle East to the U.S. market,” said Flavio Batista, chief commercial officer at Georgia Ports Authority. “Cargo owners have made significant investments to diversify manufacturing to countries in Southeast Asia and the Indian subcontinent. Now they will be able to enjoy the full benefit of that manufacturing shift with shorter lead times and a more predictable supply chain.”
The Port of Savannah has 40 weekly vessel calls, 42 weekly double-stack rail departures and nearly 15,000 daily truck moves.
Read more articles by Stuart Chirls here.
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