A Suez Canal Logistics Hub Role in the Global Shipping Network: A Case Study of a Stainless-Steel Product

Omar K. Mokhtar, Khaled G. El Sakty

Abstract


This research explores the implications of developing a logistics hub along the Suez Canal for worldwide shipping routes, with specific attention given to effects on the stainless-steel business. As a methodology, it applied the Total Landed Cost (TLC) and transportation scenarios on selected trade lanes, such as those going through the Suez Canal. The main findings have revealed that the Suez Canal Logistics Hub has lower TLC than alternative logistic hubs through direct and transshipment services. The development of this logistics hub could lessen transportation costs for numerous industries by streamlining the shipment of goods through the Suez Canal. Further analysis may reveal additional time and money savings benefits to specific sectors like stainless steel. While this research provides insightful initial data, more comprehensive exploration is needed to fully comprehend the diverse impacts across various import-export industries.

The implication of this research relies on the significance of strategic positioning for boosting shipping operations and accelerating business growth. It draws attention to the TLC as an indicator for determining efficiency and competitive advantage. Finally, it highlights the need for continuous infrastructure development and government support.


 

Keywords


Maritime Network, shipping Route, Suez Canal, Total Landed Cost.

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DOI: https://dx.doi.org/10.21622/MARLOG.2024.13.1.93

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The International Maritime Transport and Logistics Journal (MARLOG)

E-ISSN: 2974-3141
P-ISSN: 2974-3133

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