How Megaships and Fuel Costs are Changing Ocean Cargo
Posted on March 3, 2016 by Bruce Galbraith
On January 1st the Wall Street Journal posted an article detailing the importance of the expansion of the Panama Canal. This spring, once the canal is open and new megaships are traveling through, east coast ports are banking on the cargo they’re bringing through to help further increase their current growth projections. However, we’re discovering that with the low cost of fuel, some shipping lines are moving all the way around the Cape of Good Hope to reach the east coast from Asia.
In many cases, it’s cheaper for ships to sail around the Horn of Africa than to move through the canals and pay the surcharges. Should the timing delays prove inconsequential, a good possibility as the delay will ease some east coast port congestion; we may see an entirely new maritime traffic pattern open up.

significantly eased as the flow would lose approximately 60-80 vessels.
For our ocean shipping customers, this means you’ll have even more options and hopefully fewer delays. KFS can assist you with choosing the best routing for your cargo and your timing needs. Let us know how we can help and guide your cargo.