The Suez Canal Authority is set to lose over $10m in revenue from container lines routing vessels through the Cape of Good Hope rather than its waterway. The cause looks to be a unique combination of a container tonnage surplus and rock-bottom bunker prices which have increasingly prompted ocean carriers to avoid the canal. While carriers very rarely choose this longer route for the time-sensitive cargo, but the low bunker price and lack of demand in European markets due to Covid-19 lockdowns made the longer route a viable option.
