scholarly journals A Comparison Study Between the Suez Canal and the Panama Canal on the International Container Shipping

Author(s):  
خالد جابر عبد الله السقطی
2022 ◽  
Vol 121 (831) ◽  
pp. 17-23
Author(s):  
Jean-Paul Rodrigue

Intermodal shipping containers, standardized and capable of being carried on trucks, trains, barges, or ships, have transformed the global economy since they were introduced in 1959. By allowing previously separated segments of regional and global transport systems to interact, they have vastly expanded global trade and facilitated supply chains that stretch around the world. But vulnerabilities in the system became apparent during the COVID-19 pandemic. Problems at key bottlenecks in the system, compounded by an unexpected six-day shutdown of the vital Suez Canal, precipitated global disruptions leading to shortages of goods and soaring prices around the world. As the global shipping industry recovers, it will have an opportunity to transition toward a system that is more resilient.


1911 ◽  
Vol 5 (3) ◽  
pp. 615-619 ◽  
Author(s):  
Eugene Wambaugh

As a canal is part of the territory of the country through which it passes, the general principle of sovereignty gives to that country, and to that country alone, the right of fortification. This general principle is capable of modification by treaty. Thus, as the Suez Canal is wholly in Egypt, a right of fortification resided with Egypt, or with its suzerain, Turkey; and, in order to destroy the right, there had to be express provisions in the Constantinople Convention of 1888 — “ respecting the free navigation of the Suez Canal ” — to which Turkey was a party. In that treaty as to Suez, there was ample recognition of the prima facie right and duty of the local country to protect the canal. Similarly, the right to fortify the Panama Canal would still reside with the Republic of Panama, and not with the United States, if the convention of 1903 with Panama did not grant to the United States control of the Canal Zone, with all the rights which the United States would possess if it were the sovereign, and “ to the entire exclusion of the exercise by the Republic of Panama of any such sovereign rights.” The treaty specifically adds that “ the United States shall have the right * * * to establish fortifications.”


Significance Completed late and over budget, the expansion has encountered numerous glitches over the course of its construction. However, with its opening now imminent, Panama and shipping companies around the world are set to start reaping the benefits. Impacts The canal's expanded capacity will encourage ports across the Americas to upgrade their facilities. Nicaragua's canal project will struggle to make significant progress, once the Panama Canal is fully operational. Suez Canal revenues could be hit as trade patterns change.


Author(s):  
Brent Way ◽  
Faisal Khan ◽  
Brian Veitch

While previous studies have examined the economics of shipping from Europe to Asia via the Northern Sea Route (NSR) versus the Suez Canal Route (SCR), most have not adequately accounted for the variability in input parameters such as the cost of fuel or the amount of ice encountered on a voyage. Furthermore, no prior study has attempted to utilize speed optimization as part of the analysis. Because the rate fuel consumption for propulsion is intrinsically linked with vessel speed, reducing speed can create the potential for large savings in fuel costs, along with the added benefit of reduced emissions. However, the reduced speed means a longer transit time, meaning increases in other time based costs, such as daily pay for a ship’s crew. The question then becomes what is the optimal speed? This paper examines the use of speed optimization to determine whether it is potentially more profitable for a container shipping company to ship from Rotterdam to Yokohama through the SCR year round (Option A) or to ship through the NSR during the months it is passable while using the SCR for the remainder of the year (Option B). A probabilistic model is presented to determine average per trip profits for both options A and B. This model is used in conjunction with a simulation optimization technique to determine the optimum speeds to maximize average per trip profitability for each option. The results show that probabilistic simulation optimization of vessel speed may better inform shipping companies as to the financial impacts of the speeds that they choose to use for shipping and thus enable better decision making as it pertains to both route choice and ships’ speeds. The analysis indicates that speed optimized container shipping year round through the Suez Canal appears to be the more profitable of the 2 options.


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