Asked at the annual results briefing of parent Neptune Orient Lines (NOL) what the impact in the delay in the expansion of the Panama Canal would be, APL president Kenneth Glenn said, “The effect, if it is longstanding, is the status quo, things remain exactly as they are.”
Glenn went onto explain that the line cut its capacity between Asia and the US East Coast via the Panama Canal. “We have frankly minimised our capacity through the Panama Canal in recent years, it is at an all time low. Given where rates levels are it is virtually impossible to any make money moving cargo from Asia to the US East Coast.”
APL has followed the route of other lines such as Maersk Line using the all water route via the Suez Canal where larger tonnage can be deployed.
“We’ve opted to move more through the Suez where you can operate larger tonnage, and at least in theory make more money,” Glenn said.
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