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Home » Were Egypt Crisis to Close Suez Canal, Ships 'Sufficient in Number' to Sail Around Trouble

Were Egypt Crisis to Close Suez Canal, Ships 'Sufficient in Number' to Sail Around Trouble

July 26, 2013
British International Freight Association

Drewry said that if the Suez Canal was suddenly closed, container vessel schedules between Asia and Europe could be immediately adjusted to minimise delays by simply increasing speeds to 22 knots in each direction and sailing around the Cape of Good Hope.

However it also warned that "shippers would have to pay a hefty surcharge to cover the cost." Drewry says that today average headhaul speeds for various alliances range from 18.1 to 20.4 knots on the headhaul from Asia to North Europe and from 13.4 to 16.9 knots on backhauls.

The London-based consultant notes that the Suez Canal is "a key component in Asia-Europe container trade, and is becoming more important for Asia-U.S. East Coast trade, too."

The report adds: "A further complication of replacing the capacity provided by vessels stopping off in the Mediterranean en route from the Far East to Northern Europe remains, but direct services still currently have enough spare capacity for this."

It also noted "the low probability of the Suez Canal closing has increased due to the threat of terrorist activity from either the ousted Muslim Brotherhood party or one of its rivals for power."

Source: British International Freight Association

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KEYWORDS Asia Pacific British International Freight Association Europe Global Logistics Industrial Manufacturing international trade Logistics Logistics Management: Ocean Transportation Logistics Outsourcing logistics services Middle East/Africa ocean cargo transportation ocean shipping disruption Ocean Transportation Red Sea shipping Suez Canal shipping Transportation & Distribution Transportation Management
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