Increased transit restrictions to and from the Panama Canal and the consequential congestion problems have prompted Yang Ming to divert its ships from the busy shipping lane to the Cape of Good Hope route.
The Taiwanese operator stated that its re-routing will increase the transit time by seven days, from the current 84 days to 91. The shipping company also stated that it will be considering possible surcharges for its ocean shipments. Yang Ming stressed that its decision would be taken independently, without involving other carriers in The Alliance group, which it is a member of.
From January, only five Neopanamax boxships will be able to transit the Panama Canal daily, compared to the current eight. The traffic congestion problems in Panama will not have a positive impact on the market imbalances on the supply side, which according to Yang Ming president Patrick Tu remain serious. According to Tu, even with the redirection of traffic to the Cape of Good Hope, the overcapacity problem will not be resolved before 2025.
Translation by Giles Foster