NEPTUNE Orient Line's container shipping subsidiary, APL, recently launched a weekly Suez Express service from South Asia to the US east coast in a bid to combat "global freight congestion."
"The service will provide shippers with dependable Asian access to the US east coast at a time when other transport alternatives are becoming increasingly congested," APL senior vice president Bob Sappio said.
The service sails to four US east coast ports: New York, Charleston, Savannah and Norfolk, while its Asian destinations include ports in India, Vietnam, Thailand, Sri Lanka, Bangladesh, Malaysia and Indonesia.
A company spokesman told Logistics Management that the Panama Canal is increasingly congested and will remain that way until the expansion is completed sometime in the next decade, adding west coast ports are challenged by volumes and an inadequate infrastructure.
The company also described railroad velocity in the US as less than stellar, making the cost of moving freight to the biggest economy in the world increasingly expensive.
"Time-sensitive shippers have to build more time into their supply chain and increase safety stock. That's expensive," the spokesman said.
Singapore to New York transit time is 21 days, and to Charleston and Savannah, 24 and 25 days, respectively.