Now Reading: Large container ships return to Suez Canal, boosting Indian exporters
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Large container ships return to Suez Canal, boosting Indian exporters
Large container ships return to Suez Canal, boosting Indian exporters
Large container ships are returning to the Suez Canal as Christmas and New Year shipments to Europe and the US pick up, offering Indian exporters relief from high logistics costs. On Saturday,…
Large container ships are returning to the Suez Canal as Christmas and New Year shipments to Europe and the US pick up, offering Indian exporters relief from high logistics costs. On Saturday, the Bangkok Maersk, with a capacity of 17,200 TEUs, transited the canal from Italy to Singapore, the Suez Canal Authority said. This follows the passage of CMA CGM's mega vessel about a month ago.
The resumption comes after nearly 1,000 days of disruption from Houthi attacks on commercial vessels since late 2023, which forced shipping lines to take the longer Cape of Good Hope route. A sustained return to the Suez Canal could cut voyage times by about two weeks and reduce fuel and freight costs, benefiting Indian exporters of apparel, textiles, and engineering goods. Analysts say India's West Coast ports are well positioned to gain from shorter transit times to Europe.
J Krishnan of Chennai-based S Natesa Iyer Logistics LLP said the opening would restore supply chain reliability and lower freight costs, helping exporters meet foreign buyer expectations ahead of the Christmas season. A Tiruppur-based textile exporter called the revival positive, adding that sustained services and reduced freight rates would provide much-needed relief.
Indian Opinion Analysis
The Houthi attacks beginning in late 2023 forced nearly all container traffic on the Asia-Europe route to divert around the Cape of Good Hope, adding roughly 10-14 days and millions of dollars in fuel and charter costs per voyage. For Indian exporters of apparel, textiles and engineering goods to Europe, those costs and delays eroded margins and competitiveness against suppliers closer to Europe. The Suez Canal handles about 12 percent of global trade, and its disruption hit India's west coast ports hardest because they are the natural gateway for Europe-bound cargo. Whether shipping lines sustain these services depends on security guarantees in the Red Sea and whether insurers and crew are willing to return. Watch for the number of weekly Suez transits by mega vessels over the next two months: if it reaches pre-2023 levels, freight rates could drop by a quarter or more by Christmas.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
