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As shipping companies begin to prioritize the Suez Canal route, Indian cargo is arriving at the Port of Savannah, in the United States, 10 to 14 days faster. Port officials indicated that the increased speed of the supply chain translates into faster inventory delivery and lower storage costs for cargo owners.
Maersk has modified its MECL service, switching from circumnavigating the Cape of Good Hope to using the Suez Canal, which reduces transit time from Nhava Sheva, India, to Savannah to 28 days.
The Maersk Denver made the shipping company's first westbound voyage through the Suez Canal, calling at Savannah on August 9. With the return to the Red Sea, Maersk also added an eastbound call to Jeddah, Saudi Arabia, to the MECL service.
Shipping company CMA CGM is also in the process of resuming its Indamex service through the Suez Canal. This move will reduce transit time between Nhava Sheva and Savannah by five days and will require two fewer vessels to maintain weekly frequency.
"Georgia Ports celebrates improvements in transit times as several major shipping companies are returning to using Suez Canal routes connecting Georgia to global markets," said Kevin Price, President of Georgia Ports.
For its part, MSC has announced plans to reinstate some Suez Canal routes in both directions on four of its main services between Asia, Europe, and the Mediterranean: Tiger, Albatross, Himalaya Express, and Jade. By eliminating the Cape of Good Hope detour, MSC expects to operate each service with two fewer vessels, which will increase the overall available container shipping capacity.
"We are pleased to see shipping companies resuming their Red Sea voyages through the Suez Canal, the fastest and most economical route to connect Asia, South and Southeast Asia, and the Middle East with the US market. Shipowners have made significant investments to diversify their production to Southeast Asian countries and the Indian subcontinent. Now they will be able to fully benefit from this shift in production, with shorter delivery times and a more predictable supply chain," said Flavio Batista, Commercial Director of GPA.
The Port of Savannah receives 40 weekly vessel calls, 42 weekly double-stack trains, and nearly 15,000 daily truck movements.