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Container and bulk ships transiting the Suez Canal fell in both number and tonnage terms in January, continuing a trend of declining traffic that gained momentum in the second half of last year.

The number of container ships transiting the canal fell 9 percent in January, from 513 to 467, compared with the same month the previous year. There was a decline of 4.3 percent in tonnage terms, to 44,712 tons, according to figures from the Suez Canal Authority.  

January became the seventh month in a row with a year-over-year drop in the number of container ships passing through the canal, which fell by 3 percent in 2015.

The number of southbound containers shipped through the canal fell 8.7 percent in January to 14,690 and increased 1.3 percent northbound to 20,152. Container throughput fell 2.3 percent in 2015, to 41.2 million 20-foot-equivalent units.

Bulk carriers transiting the canal fell by 14.7 percent to 214 in January compared with the same month last year and by 18.8 percent in tonnage terms, to 7,084 tons, which also marked the seventh straight month of decline.

By cargo type, fertilizers, coal and coke, and ores and metals shipped northbound saw year-over-year declines of 55.3 percent, 32.7 percent and 51.5 percent, respectively, and declines of 26.6 percent, 76.3 percent and 13.4 percent southbound.

The decline in bulk sector traffic follows heavy monthly declines in the latter part of 2015. Ships and tonnage dropped by 24.5 percent and 22.7 percent respectively in December; by 30.4 percent in both categories in November, and by 20.6 percent and 23.2 percent in October. A double-digit drop was also recorded in both categories in September.

Overall traffic through the canal was slightly higher in January as the drop in container and bulk traffic was offset by growth in other sectors. January saw a total of 1,424 vessels passing through the canal, a 1 percent increase over the same month last year, as strong growth was recorded in the tanker and roll-on, roll-off sectors.

Tanker traffic expanded 15.2 percent to 387 vessels in January and tanker tonnage grew 13.3 percent. Ro-Ro traffic grew 180 percent in number of vessels and 110.5 percent in tonnage.

Meanwhile a new 8.5-kilometer (5.3 miles) access channel that directly links the East Port Said port complex to the Mediterranean Sea was officially opened at a ceremony hosted by the Suez Canal Container Terminal.

Dredged to a depth of 18.5 meters, the channel provides 24-hour access to East Port Said for vessels above 18,000 TEUs, which are using the canal in increasing numbers, and it eliminates the need for vessels heading to SCCT from waiting 6 to 8 hours for a time window between vessel convoys transiting the canal.

“I would like to express both my appreciation and my admiration of (SCA Chairman) Admiral Mamish, the Suez Canal Authority, and the Government of Egypt for their inspiring dedication to this historic infrastructure investment, which emphasizes the key role that Egypt plays in global trade and the global economy” said SCCT Terminal Director, Jan Buijze at the opening ceremony.

SCCT, which is 55 percent owned APM Terminals, said it is exploring further investments in Egypt, including general and liquid bulk operations.

Egypt in August officially opened an $8.6 billion extension to the canal that for the first time allows two-way traffic and reduces waiting times for ships. At the time of the opening, the SCA said the extension would support an increase in annual toll revenues to $13 billion per year by 2023.

The reduction in average journey time from 18 to 11 hours and improved capability to handle larger vessels is considered a substantial benefit for the business of the canal going forward. However, the projected revenue figure has been questioned by analysts who note it is dependent on a significant increase in global trade volumes between now and 2023.