1 week ago

Mega container ships return to Suez, aiding Indian exporters

Mega container ships return to Suez, aiding Indian exporters
Return of mega container ships to the Suez Canal emerges as a positive to Indian exporters · thehindubusinessline.com

Big ships are starting to use the Suez Canal again.

The canal is an important shortcut between Asia and Europe.

Ships had avoided it after attacks on commercial vessels in the Red Sea.

Instead, they sailed around Africa, which took longer and cost more.

The return of these ships may make deliveries faster and cheaper.

Indian exporters could especially benefit when sending clothes, textiles and other goods overseas.

Christmas and New Year shipments are approaching, making reliable shipping important.

However, the benefits depend on shipping companies continuing to use the canal and lowering freight rates.

Key facts

Largest ship cited
Bangkok Maersk, with a carrying capacity of 17,200 TEUs
Reported route
Bangkok Maersk traveled from Italy to Singapore through the Suez Canal
Previous mega-ship passage
CMA CGM Saint Germain passed from Morocco to Malaysia about a month earlier
Disruption period
Shipping through the canal was disrupted for almost 1,000 days after attacks on commercial vessels from late 2023
Alternative route
Major container lines diverted around the Cape of Good Hope
Potential time saving
Suez routing could reduce voyage times by about two weeks
Potential beneficiaries
Indian exporters of apparel, textiles, engineering goods and other seasonal merchandise

Quotes

A Tiruppur-based textile exporter

Official from a textile exporting company based in Tiruppur

“Supply chains will regain their reliability, freight costs will head south, and increased service frequencies will help Indian exporters approach the upcoming Christmas season with greater confidence and meet the expectations of foreign buyers.”
thehindubusinessline.com
“The revival is a positive development for the textile trade. If shipping lines sustain the Suez services and reduce freight rates, it will provide much-needed relief to exporters.”
thehindubusinessline.com

Sources

Related news