The Panama Canal route from Asia to the east coast ports of the US has retaken its traditional lead from the longer westbound route via the Suez Canal, according to analysis from Alphaliner.
Weekly capacity on the Asia-US east coast trade lane is up 20% year on year to a record high of 143,000 teu this month, Alphaliner said. The trade is served by 25 weekly strings, up from 21 a year ago.
The congestion problems facing US west coast ports appear to have played a part in the increased use of east coast ports. Six strings were launched between March and May this year, of which four are brand new services. In addition to these new loops, two seasonal summer strings were relaunched at the end of the winter slack season.
Of the six new strings, five use the Panama Canal. Panama’s share of east coast trade had been steadily falling from 74% at the beginning of 2010 down to a low of 44% in February. Now, however, it has edged into the lead over the westbound route, taking 51% of total capacity.
The 16 container services currently routed via Panama have a combined weekly capacity of 73,000 teu with an average capacity of 4,570 teu, compared to nine strings routed via Suez with a total capacity of 70,000 teu and an average capacity of 7,780 teu.
Throughput statistics also show a change in trade patterns in favour of the east coast, according to Alphaliner. “The six largest US East Coast ports posted a 14% growth in total container volumes during the January-May period compared to a year ago,” Alphaliner said.
“In contrast, the six largest US west coast ports reported a 3% decline in throughput during the same period, although the end of the port congestion since April has helped some of the west coast ports to recover part of the diverted volumes.”
Despite port congestion, container volumes grew by 5% in the first five months of the year, Alphaliner said.
But while demand is up, overcapacity on the transpacific route is keeping rates stubbornly low. GRIs introduced in June and July have failed to stick and rates from Asia-US east coast have fallen from $5,000 per feu in February to less than $2,800 per feu now. Drewry’s Hong Kong to Los Angeles benchmark fell another 14% this week to $1,280 per feu.
The one bright spot is that the surge in demand for tonnage on the Asia-US east coast lane has pushed up demand for panamax vessels.
“The six new Asia-US east coast strings launched since March have helped to absorb some 60 panamax ships, including numerous vessels which had been used to temporarily cover sailing gaps caused by west coast congestion,” Alphaliner said.