Suez Canal

  • The Suez Canal Authority is presently engaged on a two-phase development p r o j e c t which, if completed, will involve the expenditure of at least $1,200 million over the next six to seven years. Roughly half of this amount is to be financed from Egypt's reserves of foreign currency, and to date the Canal Authority has negotiated $503.3 million in foreign loans. Can such expenditure be justified? "The Suez Canal and its Impact on Tanker Trades and Economics," No. 62 in a series of shipping studies issued by HPD Shipping Publications, in considering this question, raises serious grounds for doubt.

    In the study, the volume and distribution of tanker traffic through the Canal at the height of its popularity in 1966—the last full year before the waterway was closed due to the Middle East war—is contrasted with that following the reopening of the Canal in 1975.

    The contrast is as startling as it is informative: In 1966, it is estimated that of the total potential volume of oil available to be routedvia the Canal, 74 percent (or 175.6 million tons out of a total potential trade of 236.6 million tons) actually transited via Suez. By comparison, in 1976 just 5 percent of all inter-area oil movements potentially available for movement via the waterway actually used this route.

    In terms of distribution, the pre- and post-closure figures are equally revealing. The Arabian Gulf to Southern European and Mediterranean route has now superseded the Gulf to Northern Europe route as the major trade for tankers using the Canal. Indeed, from a tracking analysis, it has been estimated that Southern European and Mediterranean destinations now account for 70 percent of all northbound oil tonnage transiting the Canal.

    This reordering of the volume and distribution of oil traffic through the Canal reflects the enforced changes in the world tanker fleet structure following the 1967 closure. At that time, 95 percent of the tanker fleet were able to transit the Canal in a full or part-laden condition, with 72 percent capable of fully laden transits. Today, only 17 percent of the fleet can use the Canal in a fully laden condition, and the economies of scale offered by the use of VLCC and ULCC tonnage utilizing the Cape route has seriously undermined the competitiveness of the Canal, with its present draft restrictions.

    The proposed development of the Canal, intended to be completed by 1983-84, will eventually allow the passage of 260,000-dwt tankers fully laden, with tankers of 300,000 dwt able to transit part-laden. On the basis of the existing fleet and newbuildings planned for delivery by 1980, these improvements will allow 66 percent of the tanker fleet to transit the Canal fully laden.

    However, as the detailed costing analysis contained in the study demonstrates, where there is a way there may not always be a will.

    The economic analysis in the study embraces several ship sizes, with their transportation costs calculated both on the underlying cost of ship operations and on the rates prevailing in the market (both a "low" and "high" market position are considered). The analysis concludes that the economic benefits resulting from the use of Suez rather than the Cape depend upon the major variables of tanker size, the distance saved by using the Canal, and the level of rates in the tanker market.

    With the present tanker surplus in excess of 100 million dwt, the planned expansion of the Canal would serve only to prolong the disequilibrium between tanker supply and demand, and so extend the period of low tanker freight rates. In such a market situation, the ability to attract large tonnage through the Canal would depend on the Authority's willingness to accept a low level of Canal dues. The existence of the SUMED pipeline (considered in the study) further complicates the issue by detracting from the total potential traffic available for the Canal.

    In view of these comments, it is open to doubt whether Phase Two of the Suez expansion scheme makes any economic sense, and whether such a development can ever generate the revenues needed to pay for its costs. Both the Egyptian national economy, and the world tanker industry might be better served by the abandonment of all Suez expansion after the work now in hand has been completed.

    "The Suez Canal and its Impact on Tanker Trades and Economics," No. 62 in a series of reports on various aspects of shipping, prepared by the Research Division of HPD Shipping Publications, 34 Brook Street, Mayfair, London W1Y 2LL, England, is available at a single copy rate of U.S. $85 (all overseas orders) or £35 (U.K. only) or on a subscription basis U.S. $325 (all overseas orders) or £135 (U.K. only) for the series 61- 70.

  • Candia, the Piraeus-based shipping organization that has, during the past four years, gained international recognition for its Suez Canal Transiting Service, has just opened a branch office in New York City. The firm has been offering its services to American shipping operators for several years

  • Following the recent announcement by Suez Canal authorities that new beam and draft regulations have gone into effect for the 120-mile waterway, a circular giving specifics is available from Candia Shipping (USA), Inc. as a service to the U.S. shipping industry. "As a major specialist in attending

  • in slot capacity than the biggest cellular vessels ordered to date, the envisaged Ultra Large Container Ship (ULCS) would be able to transit the Suez Canal I and access key ports. LR considers that there are no insurmountable technical challenges to I vessels of 12,500 TEU, and believes that it

  • the Pacific Ocean passing close to Hawaii, through the Philippines an the East Indies, across the Indian Ocean and up the Red Sea, through the Suez Canal and then across the Mediterranean and the Atlantic. Preparations are currently underway at the shipyard for the dock, which is expected to be

  • Syncrolifit, a Rolls-Royce company, has been chosen by the Suez Canal Authority to supply a shiplift and transfer system valued at more than $7 million for the dry docking of Nile River cruise ferries. Delivery of the 3,420 ton-lift-capacity Syncrolift is scheduled for the Armant Shipyard on the

  • for nearly 35 years. He holds a Master Mariner's license, and has some 20 years of merchant marine service, including about three years as a Suez Canal Pilot

  • work in the same areas. He was awarded the "Navy Meritorious Public Service Citation" for his contribution as Project Manager of the 1974 Suez Canal Wreck Clearance. Ocean Salvors is an American salvage firm offering a full range of salvage and environmental services throughout the Western Hemisp

  • gritblasting and coating facilities at Neorion Shipyard, which is on the island of Syros, Greece, a Mediterranean crossroads near the Suez Canal and the Dardenelles. Shipowners will now be able to utilize Neorion's ship repairing expertise combined with Peiniger's extensive experience

  • Stena, owned by Stena and built by Mitsubishi's Hiroshima yard, for delivery to the North Sea. That voyage is expected to take about 34 days via the Suez Canal. Circle 43 on Reader Service Car

  • . Essex has previously served as a tonnage admeasurer for the American Bureau of Shipping for 10 years, with a broad background in U.S., Panama and Suez Canal regulations as well as serving as ABS-Americas specialist in the 1969 Tonnage Convention. DnV, a major international classification society formed

  • Since opening in 1869, enlargement of the cross section of the Suez Canal has been carried out at frequent intervals such that the original cross section of 300 square meters for ships of up to 6.7 meters draft has increased to 1,800 square meters by 1963 when it could accommodate ships of up to 11.

  • MR Nov-19#74 E
EMISSION REDUCTION TECH FILES
Schottel Propulsion for)
    November 2019 - Maritime Reporter and Engineering News page: 74

    E EMISSION REDUCTION TECH FILES Schottel Propulsion for Emission-Free Push Boat The agreement between Wärtsilä and Norsepower will pro- mote the use of Rotor Sails & support sustainable shipping. Wärtsilä, Norsepower Sign Agreement The technology group Wärtsilä and Norsepower, a provider of low maintenance

  • MR Nov-19#41 WORKBOATS SOUTHERN TOWING COMPANY
“No vessel can maneuver)
    November 2019 - Maritime Reporter and Engineering News page: 41

    WORKBOATS SOUTHERN TOWING COMPANY “No vessel can maneuver a tow into or out of a dock as good as the Z drive. And then you start talking about bumps and bruises on your barges, a lot of which come when you’re docking and undocking ... the safety contribution that Z-drives makes to marine transpor- tation

  • MN Nov-19#94 VESSELS
SCHOTTEL Delivers Propulsion for World’s First)
    November 2019 - Marine News page: 94

    VESSELS SCHOTTEL Delivers Propulsion for World’s First Emission-Free Pushboat eration of Maritime Systems at the Technical University of Berlin, will be equipped with rudderpropellers from SCHOTTEL. The hybrid canal push boat is powered by a combination of fuel cells, batteries and an electric motor.

  • MN Nov-19#8 Authors   Contributors
&
MarineNews 
November 2019
Volume)
    November 2019 - Marine News page: 8

    Authors Contributors & MarineNews November 2019 Volume 30 Number 11 Huxley- Paine Custard Reynard Buddy Custard is the President and Michael Gerhardt is Vice President, Chief Executive Of? cer of the Alaska Mar- Dredging Contractors of America, and itime Prevention & Response Network. the CDMCS

  • MR Oct-19#33 HISTORY THE PANAMA CANAL
fuel costs due to IMO2020 could)
    October 2019 - Maritime Reporter and Engineering News page: 33

    HISTORY THE PANAMA CANAL fuel costs due to IMO2020 could prompt (as termed by the eminent geography be 400,000 TEUs in 2014. bound from the Gulf of Mexico to the 1.2 million TEUs inbound to the U.S. professor Jean-Paul Rodrigue) as a link Panama Canal Authority, now deriv- U.S. West Coast. to

  • MR Oct-19#31 HISTORY THE PANAMA CANAL
early 2016. By 2019, multiple)
    October 2019 - Maritime Reporter and Engineering News page: 31

    HISTORY THE PANAMA CANAL early 2016. By 2019, multiple export travelling in ballast…” typically after (which began in late 2015); these move shipping, has the potential to bring about facilities had already come online, with discharging on the U.S. West Coast and on Very Large Crude Carriers (VLCCs)

  • MR Oct-19#30 HISTORY THE PANAMA CANAL
IMO2020, impacting all aspects of)
    October 2019 - Maritime Reporter and Engineering News page: 30

    HISTORY THE PANAMA CANAL IMO2020, impacting all aspects of shipping, has the po- tential to bring about a backslide in the East Coast’s traf? c gains. Joshua Hurwitz, Senior Consultant at port designer ? rm Moffaft & Nichol has made the case that in- creased fuel costs due to IMO2020 could prompt 1.

  • MR Oct-19#29   Canal routing ahead of the Suez Canal.”
freight cost advantages)
    October 2019 - Maritime Reporter and Engineering News page: 29

    for Asia- ECNA favour the Panama Bethlehem Steel, in response to Isthmian’s wrote at the time, “The new set of locks at the Canal routing ahead of the Suez Canal.” freight cost advantages, and Lykes Lines took Panama Canal opened for business on 26 June The Canal widening coincided with sea steel outbound

  • MR Oct-19#28 HISTORY THE PANAMA CANAL
28     Maritime Reporter &)
    October 2019 - Maritime Reporter and Engineering News page: 28

    HISTORY THE PANAMA CANAL 28 Maritime Reporter & Engineering News • OCTOBER 2019 MR #10 (26-33).indd 28 10/7/2019 11:57:41 AM

  • MR Oct-19#27  drawing board.”
away, the Suez Canal, linking the Mediterranean)
    October 2019 - Maritime Reporter and Engineering News page: 27

    were enlarged from 95 to 110 feet to accommodate of the railroad’s stock price). Nearly half a world vessels then on the drawing board.” away, the Suez Canal, linking the Mediterranean Concerns about Canal security, and redundancy www.marinelink.com 27 MR #10 (26-33).indd 27 10/4/2019 10:05:59 A

  • MR Oct-19#26 HISTORY THE PANAMA CANAL
26     Maritime Reporter &)
    October 2019 - Maritime Reporter and Engineering News page: 26

    HISTORY THE PANAMA CANAL 26 Maritime Reporter & Engineering News • OCTOBER 2019 MR #10 (26-33).indd 26 10/4/2019 10:05:08 AM

  • MR Oct-19#2 NUMBER 10 / VOLUME 81 / OCTOBER 2019
Features
Cover Image)
    October 2019 - Maritime Reporter and Engineering News page: 2

    NUMBER 10 / VOLUME 81 / OCTOBER 2019 Features Cover Image Credit: © 2019 Martijn Gijsbertsen / Marco Vet 34 Born to Design CEO Basjan Faber powers C-Job full steam ahead. By Greg Trauthwein The Panama Canal 26 At long look at the strategic crossroads for the maritime world By Barry Parker U.S.Merchant

  • MN Mar-19#43 SAFETY
that’s Sub M with a TSMS. Look at  system to)
    March 2019 - Marine News page: 43

    SAFETY that’s Sub M with a TSMS. Look at system to continuously improve. Ken your risks and minimize them. You do Hebert is living proof that not only it everyday in the offce, in the wheel- can the small company comply with house or on deck. Now do it with the Sub M but that the three-boat com- bigger

  • MN Mar-19#35 TOWING COMPANY PROFILE
Hometown boy done good.
A self-made)
    March 2019 - Marine News page: 35

    TOWING COMPANY PROFILE Hometown boy done good. A self-made man, the late Capt. Beau Payne was a Miami River Rat who worked his way from rags to riches. “We grew up poor,” said Cathy. “Our mom was a barmaid. Beau was drawn to the water, instinctively, fshing the canals fshing near our frst Miami home.

  • MT Sep-19#54 Tech Files Robotics
con?  guration. tion, while optimizing)
    September 2019 - Marine Technology Reporter page: 54

    Tech Files Robotics con? guration. tion, while optimizing the route for speed. To do so, each CVP In demonstrations in an MIT pool and in computer simu- precomputes all collision-free regions around the moving lations, groups of linked roboat units rearranged themselves CVP as it rotates and moves away

  • MT Sep-19#53 Meet the Shape-
Shif  ing Autonomous 
Boats from MIT
ats
By)
    September 2019 - Marine Technology Reporter page: 53

    Meet the Shape- Shif ing Autonomous Boats from MIT ats By Rob Matheson, MIT MIT’s ? eet of robotic boats has been updated with new ca- pabilities to “shapeshift,” by autonomously disconnecting and reassembling into a variety of con? gurations, to form ? oating structures in Amsterdam’s many canals.

  • MP Q3-19#8 Editor’s Note
Within this edition’s report on the fascinatin)
    Jul/Aug 2019 - Maritime Logistics Professional page: 8

    Editor’s Note Within this edition’s report on the fascinating world of breakbulk operations, MLPro con- tributor Barry Parker advises, “In the cargo shipping world, there is the bulk sector, the con- Breakbulk: tainer segment, and then, there is everything else.” ‘Everything Else’ encompasses a wide swath

  • MR Aug-19#56 H
HEAVY LIFTERS IN PORT
“It is a bit of both,” explains)
    August 2019 - Maritime Reporter and Engineering News page: 56

    H HEAVY LIFTERS IN PORT “It is a bit of both,” explains Jeff look for height, the weight of these new Indeed, raising STS cranes is fast be- at the Port of Los Angeles were 13,000 Rosenberg, ZPMC Crane Service’s VP cranes is becoming a factor as existing coming the signature project for ZPMC TEUs.

  • MN Aug-19#55 FEATURE: TRAINING & EDUCATION
can escalate in a domino)
    August 2019 - Marine News page: 55

    FEATURE: TRAINING & EDUCATION can escalate in a domino effect.” low draft companies and customizes Lisa Overing is an award-winning Zero incidents, zero injuries and FMT’s training for Subchapter M. marine journalist and copywriter. Lisa served on the board of directors eliminating critical barge and

  • MN Aug-19#46 FEATURE: INLAND MARINE OPERATORS
MN100
“We have a strategy)
    August 2019 - Marine News page: 46

    FEATURE: INLAND MARINE OPERATORS MN100 “We have a strategy in place to balance the commercial requirements and age of our open hopper ? eet. We need to meet the requirements of our power generation customers and we continue to look for opportunities to add or replace open hopper barges.” – Peter

  • MN Aug-19#2 MN100MN100
MarineNews  August 2019  •  Volume 30   Number)
    August 2019 - Marine News page: 2

    MN100MN100 MarineNews August 2019 • Volume 30 Number 8 CONTENTS Company PageCompany Page ABB ............................................................................................... 12 Konrad Marine ............................................................................ 66 ABS ............

  • MP Q2-19#48 Advertiser Index
Page Company     Website Phone#
C2)
    May/Jun 2019 - Maritime Logistics Professional page: 48

    Advertiser Index Page Company Website Phone# C2 Arconas www.arconas.com Please visit us online 3 Breakbulk Americas www.americas.breakbulk.com Visit our website C3 Marine Interiors - Cruise & Ferry Global Expo www.marineinteriors-expo.com Visit our website 1 Northwest Seaport Alliance www.

  • MP Q2-19#20 CONTAINER LOGISTICS
a crane than meets the eye. Myriad)
    May/Jun 2019 - Maritime Logistics Professional page: 20

    CONTAINER LOGISTICS a crane than meets the eye. Myriad design issues precede every ised, that sort of forethought is also proving to be prescient. “Yes, it’s operation. These include, but are not limited to: all about larger ships. We are in the ‘raising cycle’ right now. Most terminals have at least a

  • MN Jul-19#42 SAFETY & TRAINING
“We have a true part-
nership with FMT)
    July 2019 - Marine News page: 42

    SAFETY & TRAINING “We have a true part- nership with FMT,” said Schwab, who added, “We (Delgado) used an FMT facility after Ka- trina to continue to train FMT and other mari- time companies while rebuilding our site that was destroyed. We customize training for FMT with Subchapter M. We work with