As some shipping lines begin testing the Suez Canal routing, Indian cargo is reaching the Port of Savannah 10-14 days faster. Improved supply chain velocity means faster inventory fulfillment and lower inventory carrying costs for cargo owners.
“Georgia Ports welcomes the transit time improvements as several major carriers return to Suez routings linking Georgia to world markets,” says Kevin Price, president of Georgia Ports.
“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,” says GPA chief commercial officer Flavio Batista. “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.”
Key takeaways:
- Maersk shifted its MECL service from routing around the Cape of Good Hope back to the Suez Canal, cutting the transit time from Nhava Sheva, India, to Savannah to 28 days. The Maersk Denver made the ocean carrier’s first new westbound sailing via the Suez, calling Savannah Aug. 9. With the return to the Red Sea, Maersk also added an eastbound call to Jeddah, Saudi Arabia, to the MECL service.
· CMA CGM is also in the process of returning its INDAMEX service via the Suez Canal. The move will reduce transit time from Nhava Sheva to Savannah by five days and require two fewer vessels to maintain weekly frequency.
· MSC announced plans to restore some Suez Canal routings in both directions on four major Asia-Europe and Mediterranean services: Tiger, Albatross, Himalaya Express and Jade. By eliminating the Cape of Good Hope detour, MSC expects to operate each service with two fewer vessels, increasing available global container ship capacity.
