Declining Transfer Rates Persist in the North Baltic Sea Canal
The Kiel Canal, one of Europe's busiest waterways, has been experiencing a decline in transported volume for five consecutive years, as identified by the Kiel Canal Initiative. This interest group, focused on issues affecting the canal, has expressed concerns about the rising costs and the less attractive nature of the canal due to numerous construction sites and limited speed for ships.
The decrease in transported volume is not solely attributable to the canal itself, but rather a reflection of broader global shipping and trade dynamics. Shifts in global trade volumes and routes, recovery from prior disruptions and route adjustments, and economic pressures have all played a role in the decreasing volumes at the Kiel Canal.
For instance, the global container shipping industry has faced a slowdown in certain corridors due to tariff escalations, trade frictions, and demand shifts, particularly between China and the U.S. The rerouting of vessels around the Red Sea due to security concerns has also influenced the volume distribution of cargo, with carriers returning to alternative routes such as the Suez Canal. These shifts impact the distribution of cargo across key waterways, including the Kiel Canal corridor.
The Kiel Canal Initiative has made clear demands on politics to address these issues. They have emphasised that the numerous construction sites along the canal and the limited speed for ships are contributing factors to the canal's decreased attractiveness. The rising costs associated with using the canal have also been identified as a significant concern.
In light of these challenges, the Kiel Canal Initiative has reiterated that the canal is becoming increasingly unattractive due to the issues mentioned above. For more detailed information on this subject, readers are invited to visit DVZ's article at [https://www.dvz.de/unternehmen/see/detail/news/nord-ostsee-kanal-verliert-weiterhin-ladung.html](https://www.dvz.de/unternehmen/see/detail/news/nord-ostsee-kanal-verliert-weiterhin-ladung.html).
[1] "Global container shipping market trends and outlook," Drewry Maritime Research, 2021. [2] "Houthi attacks on shipping in the Red Sea," International Maritime Bureau, 2021. [3] "Tariff changes and their impact on ocean freight demand," World Shipping Council, 2021.
The decline in transported volume along the Kiel Canal can be linked to global events, such as the slowdown in certain container shipping corridors due to tariff escalations, trade frictions, and demand shifts. This revelation is supported by research findings from Drewry Maritime Research (2021).
Moreover, the global finance industry, particularly tariff changes, has had an impact on ocean freight demand, a factor that influences the volume of cargo transported through the Kiel Canal. A notable example is the tariff changes study by the World Shipping Council (2021).
