Shipping lines have reduced the transit time of cargo from the port of Nava Shiva in India to the port of Savannah to 28 days with the return to the Suez Canal route. This change will particularly lead to improved supply chain speed and reduced inventory holding costs for cargo owners.
Changes in Shipping Services
Maersk Line has contributed to reducing transit time by transferring its MECL services from the route around Cape Hope to the Suez Canal. The Maersk Denver vessel made its first new westward voyage through Suez on August 9. With the return to the Red Sea, Maersk has also added a new eastbound stop in Jeddah, Saudi Arabia for MECL services.
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CMA CGM is also returning to the Suez route for its INDAMEX services. This change reduces transit time from Nava Shiva to Savannah by 5 days and creates a need for two fewer vessels to maintain weekly frequency.
Impacts on the Supply Chain
Kevin Price, the head of Georgia Ports, has welcomed the improvement in transit times and evaluates these changes positively for several major shipping companies that have returned to the Suez route. According to him, these changes help companies benefit from enhanced advantages in the supply chain.
MSC has also announced plans to restore some Suez Canal routes in both directions for four main Asia-Europe and Mediterranean services. This change, by eliminating the detour around Cape Hope, allows MSC to operate each service with two fewer vessels and increases the capacity of global container ships.
GPA Executive Director Flavio Bastista stated that the return of shipping lines to Red Sea transits via the Suez Canal is the fastest and most economical way to connect Asia and the Middle East to the U.S. market. This change allows companies to benefit from production diversity in Southeast Asian countries and the Indian subcontinent and have shorter delivery times.
The port of Savannah supports these changes by offering various supply chain options, including 40 weekly vessel trips, 42 weekly double-stack trains, and nearly 15,000 truck movements per day. Truck turnaround times for dual import-export exchanges are 50 minutes, and the average time for container transfers to rail is only 20 hours.
The extensive network of distribution centers at the port of Savannah, established by private operators near the port, provides multiple options for reloading, order fulfillment, and supply chain speed.
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