Long Beach: Geography dictates that Shanghai is the absolute northernmost point for calls from Asia to the US East Coast via the Suez Canal, according to the ceo of Maersk Line, Soren Skou. Maersk is among a host of big carriers shifting calls to America’s eastern seaboard from the Panama Canal to the Suez Canal, in a bid to soak up capacity. Choosing the Suez option is roughly 5% longer than the Panama route, Skou said.

“You can draw a line at Shanghai,” Skou reckoned, “as anything north of there will remain headed to the Panama Canal as transit times are too big differences from there.”

Skou reckoned the split between Panama and Suez to the US east coast was now 60:40 in the Central American nation’s favour. 90% of east coast calls went through the Panama Canal as recently as 2008, he said.

Suez services to US east coast allow for 8,000 to 9,000 teu ships rather than panamax-sized ones. These ships are cascading down from the Asia - Europe trades.

“8,000 to 9,000 teu ships are becoming obsolete on Asia - Europe,” Skou said.

“Suez services will be a way that we manage capacity in the industry,” the Maersk ceo maintained.

Source from SinoShip