Why is it cheaper to travel by sea?
Shipping on the international market oil price slump has produced many influence, one of them is, ships sailing around the African might be more save money than through the Suez Canal.This article is written by the BBC’s Chris Nick barak, although last year’s article, fetched read but still now.
The Suez Canal is one of the most important project in the 19th century.It is a huge project, spent nearly 20 years to build, with about 1.5 million workers, during the thousands of people lost their lives.But, when it finally opened in 1869, after can ship from the red sea between Africa and Asia to the Mediterranean, save for a few weeks time.This is a revolution of trade.
From then on, through the canal has been considered more or less has important implications for global business.Each shipping company every year, a total of the Suez Canal authority to Egypt’s state-owned institutions pay billions of dollars, to purchase a canal privileges.
For example, it will be from Singapore to Rotterdam, the Netherlands route distance decreased nearly 3500 nautical miles (6480 kilometers), for the ship owners to save a lot of time and a lot of money.
Through the canal cost nearly 250000 pounds ($350000),
However, more and more shipping to start the decided not to take route.Instead, they choose to bypass the southern tip of Africa’s most the cape of good hope.In late October 2015 by the end of 2015, more than 100 ships chose this route.
Oil industry analysis company OPIS Tanker Tracker’s Michael Wiese berkman (Michelle Wiese Bockmann) said: \”for the past eight years, I have been tracking report shipping. So many ships around the cape of good hope is very rare.\”Now, she continued to pay close attention to, found that half of the diesel and jet fuel carrier chosen this route.
The cost of the sea is not as high as in the recent years
Berkman explains, is one of the important factors of lower oil prices.This means \”bunker fuel\” (ship itself using high viscosity fuel) is very cheap.In fact, in Singapore, the cost of such fuel from May 2015 of about $400 per ton (286 pounds) by now about $150 (107 pounds) per ton.
Therefore, the cost of the sea is not as high as in the recent years.But what it means to take a longer route?Maersk ship manufacturers estimates that if a ship sailing at the rate of 13.5 miles per hour, around the cape of good hope to spend 11 days.Why?
On the one hand, the Suez Canal has unreasonable fees, maersk said the roughly every ship $350000 (249000 pounds).There are other costs.The ocean international voyage (Deep Sea and Foreign Going) author George Ross (Rose George) a few years ago by boat through the canal.She noticed that, when the ship through the canal must be equipped with the suez crew.
Ships sailing may continue to use cheap fuel longer distance, rather than spend more canal tolls.
“Each voyage, the suez will let each boat to pay about 400 pounds ($560) of the cigarette, and many chocolate.\”
In addition to these things annoyed, and tough economic conditions and oil and shipping market.
More and more oil and refined oil products are retained in the sea or retained by traders, waiting for prices to rise again
On the one hand, traders are the implementation of the so-called \”cotangent\”, more and more oil and refined oil products are reserved or retained by traders on the sea, to wait for the price rise again.Crude oil supply all over the world at present, although our oil supply, but we (a kind of refined oil products) for gasoline demand is still quite high.This situation lead to market volatility, and this is the place of traders profit, berkman said.
She said: \”one of the trading strategy is, they don’t have to sell the goods, they need more time.\”She also added that ships anchored offshore sometimes ship (called \”shore floating warehouse\”), they are just waiting for the market to help.Berkman said: \”in December to dock float storehouse hit a five-year low, since then has yet to drop so much.\”
The Suez Canal was built, ships don’t have to face the challenges of the cape of good hope.
Then, for the owner, the initiative seems to be always in his own hands.In some cases, they can choose a longer route, stay longer at the sea, even in Asia, Africa and Europe ports on the purchase of unsold goods, can find the right buyer at the right time.Ships must conform to the requirements of the size of a given port, and the ship’s products meet the standards set by the local market needs, but in the end, as long as you have the right people buy the goods with appropriate price, the transaction will run smoothly.Otherwise, they may lose money.
At present some ships have decided to bypass the cape of good hope, many thousands of miles, hoping to profit by the time the end of the voyage.This may seem strange, but in the oil markets, sometimes go a longer way is a better choice.