The opening of the Suez Canal in November 1869 was one of the most important landmarks in nineteenth century maritime history. Although it impacted only a little on shipping in northern European or North Atlantic waters, it revolutionised the shipping trades between Europe and Asia and strongly influenced those between Europe and Australasia as well. The Canal considerably shortened distances between European and Asian ports, but did so by a route which was much more favourable to steamships than sailing ships (because of the costs to the latter of towage through the canal, and the fickle nature of the winds of the Red Sea). Steamships via the Canal now became competitive with sailing ships around the Cape of Good Hope and a tide of new steam tonnage poured through the Canal in the early years of its opening, in a search for cargoes and passengers. The Canal therefore hastened the transition from sail to steam in Asian trades. Sailing ships either became confined to the less remunerative bulk cargoes or were diverted onto the very long shipping routes, such as those from Europe to Australia or the Pacific coast of South America, where steam remained less competitive until the widespread adoption of triple and quadruple expansion engines towards the end of the century. However, the opening of the Canal was more than a challenge to the owners of sailing ships plying to and from Asia around the Cape. It was also a threat to steamship companies already operating in the Indian Ocean, for whom distance from Europe had previously provided some shelter from the competition of technologically and commercially more efficient enterprises located in Europe. For such concerns, the opening of the Canal was like the unlocking of a floodgate. Some, like the Bombay and Bengal Steamship Company, simply foundered; others, like P&O, caught with two ageing fleets with separate establishments and crews, one in the Mediterranean and the other in the Indian Ocean, had to undergo painful and expensive reconstruction to stay afloat. How did William Mackinnon and his associates respond to the new maritime environment? What were the consequences of the opening of the Suez Canal for the British India and Netherlands India Steam Navigation Companies?