Container shipping lines are shifting more of their all-water services from Asia to the U.S. East Coast to the Suez Canal route, instead of sailing through the Panama Canal.
Panama Canal Expansion
The $5.25 billion expansion of the Panama Canal will either dramatically boost East and Gulf Coast container trade or disappoint their expectations of gaining more cargo. But the opening of much larger locks in 2015 is already boosting prospects for more exports to Asia from U.S. Gulf ports of LNG, coal and grain cargos.
What is certain is that the doubling of capacity on the connector of the Atlantic and Pacific oceans will change the way the world¹s shipping lines ply their global routes when the project is completed. The doubling of the canal’s capacity will allow shippers to bring their Asian goods to the Eastern and Gulf coasts for less money. That’s largely because the new locks will be able to handle larger vessels that can carry nearly three times as many containers. The project is also expected to bolster Panama’s strategic positions as a transshipment hub and business center for much of Central and South America.
For general developments at the Panama Canal, see also JOC’s Panama Canal News page.
Press Releases
Special Coverage
12 Jun 2013
The number of container ships passing through the Panama Canal continued to slide in May 2013, down 9 percent year-over-year. The pace of the decline has accelerated over the past two months.
29 May 2013
Scrapping will prove the salvation of the container shipping sector in 2014 but liner losses could mount this year, according to one leading analyst.
20 May 2013
Rebecca Blank, U.S. acting commerce secretary, has wrapped up her week-long Latin America trade mission in Panama, which highlighted the importance of the U.S.-Panama bilateral trade relationship.
16 May 2013
LONG BEACH, Calif. — As North American container ports compete fiercely for market share, it’s becoming clear that the winners will be those that reliably and efficiently handle mega-ships on the water and land side of the berths.
15 Apr 2013
In one of the more renowned Aesop Fables, the tortoise’s slow and steady pace leads it to victory in a race against the frenetic hare. In the world of maritime commerce, a similar race is playing out between the Panama and Suez canals.
More Commentary
Video
On the second day of a two-day tour of Panama, JOC Editor Mark Szakonyi rides the Panama Canal Railway to the Port of Colon, a growing transshipment hub.
On the first day of a two-day Panama Canal tour, JOC Editor Mark Szakonyi checks out a Hamburg Sud container ship pass through the canal.
More on JOC
Jun 5, 2013 2:00PM EDT
Commentary
Annual Review & Outlook 2013: Panama Canal Authority