Panama Canal loses customers to cheaper Suez
Monday, May 6, 2013
Panama Canal authorities expect a 2.4 percent decline in cargo volume crossing the waterway this fiscal year after two major shipping companies rerouted vessels through the Suez Canal, the canal administrator said.
In March, Maersk Line, the world’s largest container shipping company and the Panama Canal’s top customer, announced it would reroute services from Asia to the East Coast of the United States via the Suez Canal.
Though taking 11 days longer, the company says the move saves money as it can nearly double its load on bigger ships.
Source: Business Insight