News / Swire launches transpacific service avoiding congested Panama Canal

Swire Projects, the heavylift subsidiary of Swire Shipping, has launched a dedicated transpacific semi-liner service that avoids the Panama Canal, after shippers have faced long delays and surcharges in the region.  

Low water levels in the canal, caused by a lack of rain, meant the Panama Canal Authority (PCA) implemented restrictions on shipping in October that may continue through to February. This prompted shipping lines to introduce surcharges on cargo transiting the waterway.

Now, shippers are looking for alternative routes to save both time and money.  

Swire said its dedicated semi-liner service “connects the base ports of Qingdao and Taicang in China and ports en route, with Everett, Washington, and Vancouver, British Columbia”. It will also offer inducement calls at ports in South-east Asia, the US west coast and Mexico.

Stopping at the west coast will offer a gateway to the US interior, avoiding the need to route cargo via the Panama Canal, it explained.

This service was previously offered on an ad hoc basis, but Swire Projects said there was “growing demand for reliable breakbulk and project cargo transport into the west coast”.  

Swire Projects added that the vessels on this service could accommodate a wide range of cargo, including project, breakbulk, IMDG, steel, forest products and dry bulk.

Meanwhile, this month, Maersk predicted cargo capacity for project logistics would be a challenge going into Q1 24.  

It explained: “During the pandemic, the demand for ro-ro vessels exponentially lowered, as not many consumers were buying personal vehicles… Currently, the issue is that consumers are starting to buy more cars again, taking capacity and making it challenging for vessels to be used to transport big machinery. 

“The cargo that would usually be on a ro-ro ship will need to be moved in other ways, such as containerised shipping or multipurpose vessels.” 

Maersk added: “In the coming year, we will see a dynamic where the volumes are shifting between types of vessels, due to capacity not being enough in one part of the market, as well as overcapacity in other parts.” 

Regional head of Americas at Swire Projects Rufus Frere-Smith said: “We feel that there is room in the market for a quality oriented, project carrier that can provide regular sailings to the market. Project cargo into the west coast is frequently carried by conventional bulk carrier operators because there is a lack of other regular options.”   

It is predicted that more shippers will seek alternative routes rather than face delays at the Panama Canal. Analysis by S&P Global shows the Suez Canal share of US Gulf to Asia shipments increased to 83% in October, versus 23% a year ago.