Ships Carry Less Cargo Through Kiel Canal in 2024: All the Juicy Details
- Decreased Navigation Through North Baltic Sea Canal
Shipping through the Kiel Canal took a dip in 2024, with a 2.1% decrease in cargo transported compared to the previous year. The cargo volume dropped to around 75.6 million tons, as reported by Heiko Böschen, the General Directorate of Waterways and Shipping's big cheese, during his annual report presentation.
Böschen isn't shy about pointing fingers. He blames the current global crises for affecting trade routes, goods flows, and quantities. While the canal used to handle a whopping 14.2 million tons of cargo to and fro Russian ports in 2021 (before the Ukraine conflict), that figure dropped to a mere 2.3 million tons in 2024.
Despite the shrinking number of ships, the ones that stuck around got bigger. The gross tonnage, which represents the total size of a ship, increased from 5,476 to 5,688.
All is not doom and gloom, though. Investment in the canal's renovation and expansion is up, with a hefty €297 million dumped into the NOK, setting a new record in recent times.
The fifth lock chamber in Brunsbüttel is all set to start operations by the end of 2026. The construction of the two small locks in Kiel-Holtenau is also on the horizon, with the project slated to roll into the next decade, with a hefty €650 million price tag.
What's Behind Their Cargo Woes?
The decreased cargo volume isn't just a Kiel Canal problem; it's part of a larger trend. The conflict in Ukraine and geopolitical tensions have caused trade disruptions worldwide. For instance, volumes through the Suez Canal plummeted by 75% in 2024 due to attacks on ships in the Red Sea. Many vessels opted to reroute around the Cape of Good Hope, increasing transit times and costs significantly.
The Eurasian rail route, however, has been a beacon of stability, attracting more shippers due to its efficiency. In fact, rail freight rates remained steady, encouraging a 10.6% increase in volumes in 2024, especially in China-EU transit traffic. The rail route has become a reliable alternative to the turbulent sea routes.
Why You Might Want to Stick Around
The ongoing crises have caused ripples throughout the global supply chain, impacting everything from electronics to clothing. Higher transportation costs, increased insurance premiums, and delays have squeezed profit margins and potentially fueled inflation. However, the Kiel Canal remains an essential route, saving ships approximately 260 nautical miles and reducing transit time by 14 to 18 hours compared to navigating around Denmark.
- Heiko Böschen, in his annual report, attributed the decrease in cargo transported through the Kiel Canal in 2024 to global crises affecting trade routes, goods flows, and quantities.
- The community policy could consider the vocational training programs essential for the workforce in the shipping industry, given the increase in the gross tonnage of ships using the Kiel Canal despite the decreased cargo volume.
- The upcoming canal renovation and expansion projects with a combined investment of €947 million, including the fifth lock chamber in Brunsbüttel and two small locks in Kiel-Holtenau, may attract more cargo and ships to the canal in the future.
