Are ships really avoiding the Suez?
Falling oil prices do not necessarily spell disaster for the Suez Canal.
While the Nile River has frequently been described by Egyptians as the country’s lifeline, the Suez Canal could be considered the pulse of the Egyptian economy. The canal has recently become the economy’s primary source of hard currency, in light of Egypt’s dwindling foreign reserves, the deteriorated tourism sector and the declining influx of foreign investments.
Thus, news that the Suez Canal is facing a setback alarmed officials, experts, citizens and both supporters and opponents of the current regime and its canal development projects. SeaIntel Maritime Analysis, a market intelligence provider in the container shipping industry, said Feb. 26 that the price of bunker fuel is now so low that it is cheaper to reroute many Asia-US East Coast and Asia-north Europe services to the Cape of Good Hope, away from the Panama and Suez canals.
