Route Selection by Tankers(Dirty) at the Suez Canal

The Suez Canal,attached route alternatives with traffic flows and areas are described and theoretical break-even points derived. Logistically,route selection depends on relative distances,the level of spot rates and canal dues,the sensitivity to change growing with rising rate levels.The connection is diluted by the canal /pipeline owners’ price differentiation and the charterers’ capital costs;interest on cargo and change of its value during transit.Ship-owners are largely neutral to route choice as long as rates and main cost items are directly related to distance.