Cairo – Mubasher:The timing of launching the new Suez Canal has been optimal , said a recent research note compiled by Pharos research.

The Panama Canal, which is competing with the Suez Canal for the Asia-East US traffic, is currently undergoing expansions that will increase its depth and width significantly by April 2016, noted Pharos.

Despite the shortness of the route through the Panama Canal, the Suez Canal has been able to attract a significant portion of this traffic over the past ten years due to its ability to accommodate larger ships. In response, the launch of the New Suez Canal has maintained the competitiveness of the route versus the Panama Canal, via reducing transit time to 11 versus 18 hours for southbound traffic, added Pharos.

Meanwhile, the shorter transit time has also helped maintain the competitiveness of the Canal versus the longer but toll-free alternative route around Africa, which is particularly feasible at present given the plunge in bunker fuel prices over the past 12 months, stated Pharos.