Now that liner networks have been reworked to use the round-of-Africa routing, using our usual model for calculating demand in TEU*Miles, Sea-Intelligence estimates that moving the same amount of cargo globally would increase the demand by 16 percent. This equates to an increase of 16 percent," says the latest update. "The trade between Far East and North America is the least impacted overall but this is because the impact is volume-weighted, and of course the distances from Far East to U.S. West Coast are not impacted and neither is the distance from Far East to U.S. East Coast via Panama." The 16 percent increase in global TEU*Miles, in turn, means that the need for capacity also increases by 16 percent, the update added. The second is by speeding up vessels to allow the same amount of vessel capacity to deliver more TEU*Miles per year.
