The Panama Canal has lost its competitiveness for Maersk Line and Evergreen which have, during recent months, redirected their services via the Suez Canal.
Jorge Quijano, Administrator of the Panama Canal Authority (ACP), said that following its incorporation into CKYHE alliance, Evergreen had replaced its 4,000 teu capacity vessels with vessels of up to 8,000 or 9,000 teu capacity with the result that with effect from May this year (2014), the service would no longer use the waterway.
A year ago (May 2013), Maersk Line redirected its TP 7 service via Panama to Suez using larger vessels to achieve economies of scale. This meant a reduction of 104 Canal transits representing approximately US$44m less toll revenue for the ACP; it is believed that the Evergreen rerouting will have a similar result.
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