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 early 2016 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.

Virginia moves to become deepest US East Coast port

Ari Ashe, Senior Editor |
The first step in dredging the harbor in Norfolk will begin in January 2020, kickstarting a project that will make the Port of Virginia the deepest harbor on the East Coast.
North American ports

Greater East Coast connectivity threatens smaller US ports

Lars Jensen, CEO, Sea-Intelligence Consulting |
Falling behind on connectivity for import/export cargo can easily trigger the negative feedback loop, eventually leading to elimination of the regular liner services.
North American ports

Canal competition for US East Coast cargo heats up

Greg Knowler, Senior Europe Editor |
Asian manufacturing shifts and the rising cost of fuel are influencing all-water US East Coast services.
Maritime

More rain needed to avoid Panama Canal draft limit crunch

JOC Staff |
Shallow Panama Canal draft limits have already pushed up spot rates from Asia to the East Coast, with the cost of moving an FEU up 14 percent year over year.
Container lines

Panama Canal draft limits lift trans-Pacific spot rates

Bill Mongelluzzo, Senior Editor |
Draft restrictions resulting from low water levels in the Panama Canal are driving up spot ocean freight rates between Asia and the US East Coast in the short term, but the long-term outlook is unclear due to further threatened tariffs on US imports from China.
Container lines

Panama Canal draft restrictions limiting container ship loadings

Greg Knowler, Senior Europe Editor |
The Panama Canal Authority (ACP) announced the sixth reduction in its maximum draft this year for the Neopanamax locks on Gatun Lake as water levels continue to fall.
International portsContainer lines

Panama Canal warns of sharper El Niño draft limits

Keith Walls, Asia correspondent |
With draft restrictions already imposed in the waterway’s larger locks due to lack of rain, the Panama Canal Authority is working on plans for a third water reservoir that would help replenish the locks system during dry weather.
Container linesInternational ports

Larger ships than expected traversing new Panama Canal

Peter T. Leach, contributing editor |
The long-anticipated sea change in trans-Pacific shipping networks is well underway a year after the Panama Canal opened its expanded lock system.
Container linesNorth American ports

Panama Canal tables plans for Corozal terminal

Peter T. Leach, contributing editor |
A Panama Canal Authority plan to build a big new container terminal in Corozal near the Pacific entrance has foundered on legal challenges.
Port NewsContainer lines

New Panama Canal locks accelerating US coastal import shift

Dustin Braden, Shipper Relationship Manager |
Average container ship sizes through the Panama Canal have increased by roughly 47.5 percent to 6,000 TEU since the June 26 opening of the Panama Canal’s larger lock.
International portsNorth American ports

Canal proposes lower tolls for New Panamax backhauls

Joseph Bonney, Senior Editor |
The Panama Canal Authority plans to implement a reduced toll schedule for Atlantic-to-Pacific backhauls.
Container linesInternational ports

Panama Canal overtakes Suez on Asia-US East Coast route

Bruce Barnard, Special Correspondent |
The Panama Canal has overtaken the Suez Canal as the favored transit route for carriers operating services between Asia and the US East Coast following the widening of the Central American waterway.
Container linesInternational ports

No escape for Panamax owners as ship redundancies mount

Greg Knowler, Senior Europe Editor |
Scrap another 100 Panamax ships in the next couple of months if there is to be any rebalancing of supply and demand, Alphaliner warns.
International portsContainer lines

New Panamax ships total 11 percent of canal transits

Joseph Bonney, Senior Editor |
More larger ships expected as carrier alliances revise schedules.
International portsContainer lines

Panama Canal raises new locks’ draft

Joseph Bonney, Senior Editor |
The Panama Canal Authority said increased rainfall has permitted an increase in maximum allowable drafts at the canal’s new locks.
International portsContainer lines

Panama Canal struggles to boost container ship transits

Bruce Barnard, Special Correspondent |
Container ship transits through the Panama Canal are running well below capacity following its $5.25 billion widening.
International portsContainer lines

Panama moves forward with Corozal port project

Joseph Bonney, Senior Editor |
Four port operators have until Feb. 3, 2017, to submit economic proposals to design, build, and operate a container transshipment terminals near Corozal, at the Pacific entrance to the Panama Canal.
Maritime

Rosy East Coast port forecasts hinge on more than Panama Canal

Bill Mongelluzzo, Senior Editor |
Irrational exuberance could result in inflated expectations and overbuilding of transportation infrastructure to the US interior if the cargo volumes don’t materialize.
North American portsInternational ports

Larger Panama Canal no guarantee of more Asian cargo for eastern US ports

Bill Mongelluzzo, Senior Editor |
<p>“Cost, consistency and capacity will determine the gateways through which Asian imports enter the US."</p>
North American portsInternational ports

Panama Canal provides ro-ro operators flexibility, savings

Joseph Bonney, Senior Editor |
The Panama Canal’s expanded locks have opened a new path for roll-on, roll-off carriers.
MaritimeInternational ports

Canal adds foot to maximum draft of neo-Panamax locks

Joseph Bonney, Senior Editor |
Canal officials said they're "very pleased" with operations so far.
International portsContainer lines

Rickmers Maritime loss soars in weakening charter market

Bruce Barnard, Special European Correspondent |
Rickmers Maritime said its charter fleet faces even tougher times ahead following the opening of the widened Panama Canal as its second-quarter loss more than tripled and its charter revenue was down more than a third from a year earlier.
Breakbulk carriers

Tampa hopes new cranes will help draw container lines

Joseph Bonney, Senior Editor |
Port touts its proximity to distribution centers along Florida's I-4 corridor.
North American portsMarine terminalsInternational ports

2M service reroute from Suez to Panama to speed US import transits

Mark Szakonyi, Executive Editor |
Maersk Line said it would reroute one of its Suez Canal strings just days before the Panama Canal opened June 26.
Container linesInternational ports

Massive TEU scrapping just a dent in surplus capacity, Drewry says

Greg Knowler, Senior Europe Editor |
Container lines won't be able to scrap themselves out of their excess capacity situation.
Container lines

Panama Canal ousts Suez as top Asia-US East Coast route

Bruce Barnard, Special Correspondent |
The Panama Canal has ousted the Suez Canal as the leading route for all-water container services between the Far East and the U.S. East Coast.
International portsContainer lines

Panama Canal expansion spells trouble for Panamax ships

Bruce Barnard, Special Correspondent |
The recent opening of the expanded Panama Canal is shaking up the deployment pattern of container ships.
Container linesInternational ports

HMM to deploy larger ships on trans-Pacific service calling US East Coast

Xiaolin Zeng, Special Correspondent |
Hyundai Merchant Marine plans to deploy six ships with capacities of 10,000 twenty-foot-equivalent units on an existing Asia-U.S. East Coast service via the enlarged Panama Canal.
Container linesInternational ports

New Panama Canal locks handle first commercial transit

JOC Staff |
Cosco Shipping Panama on Sunday made the first commercial transit of the Panama Canal’s new locks.
International portsBreakbulk News

Panama Canal expansion will affect shipping — but how?

Joseph Bonney, Senior Editor |
The larger locks of the Panama Canal open on Sunday, but what impact will they have on global trade and container shipping?
International portsContainer linesBreakbulk News

2M to shift USEC all-water service from Suez to Panama

Joseph Bonney, Senior Editor |
The 2M Alliance plans to shift one of their Asia-to-U.S. East Coast services to the newly expanded Panama Canal.
International portsContainer lines

All-water service replaces Mexican intermodal route to Houston

Joseph Bonney, Senior Editor |
A new Panama Canal container route to the U.S. Gulf from Asia will replace and build on an intermodal rail service that Maersk Line launched via Mexico.
North American portsInternational portsRail News

Panama Canal Authority reviewing completed new locks

Dustin Braden, Shipper Relationship Manager |
The Panama Canal Authority will determine whether its third set of locks where leaks were found are functional.
International portsMaritime

Suez Canal beefs up transit discounts to head off Panama pressure

Dustin Braden, Shipper Relationship Manager |
The Suez Canal has extended and deepened discounts to container lines.
Container linesInternational ports

Details of Panama's first post-Panamax container terminal announced

Angela Yu, Special Correspondent |
The Panama Maritime Authority has reached an agreement with a Chinese consortium on Panama's first post-Panamax capable container terminal.
International ports

Panama Canal narrows field of bidders for new container terminal

Greg Miller, Special Correspondent |
APM Terminals, Terminal Link, Terminal Investments Ltd , and PSA International have pre-qualified to bid on a proposed container terminal at Corozal, according to the Panama Canal Authority. Mitsui O.S.K Lines, Manzanillo International Terminal and Ports America were were not approved.
International ports

Panama Canal locks to officially open June 26

Joseph Bonney, Senior Editor |
The Panama Canal Authority said its new locks will be inaugurated June 26, more than two years after the original completion target.
International portsBreakbulk NewsContainer lines

Panama Canal to set draft restrictions

Greg Knowler, Senior Europe Editor |
The Panama Canal Authority will set draft restrictions on shipping using the vital east-west waterway as the El Nino weather phenomenon causes water levels to fall well below average for this time of year.
International portsContainer linesBreakbulk News

Views differ on outlook for growth in Panama traffic to US East Coast

Peter T. Leach, Editor-at-Large |
A panel of ocean shipping experts at the 16th Annual TPM Conference gazed in their crystal balls and saw very different outcomes for shipping patterns after the Panama Canal opens its new larger locks to commercial traffic in June.
Container lines

Panama Canal warns of possible draft restrictions to existing locks

Joseph Bonney, Senior Editor |
The Panama Canal Authority warned that the El Nino weather phenomenon could result in draft restrictions on the waterway as soon as April.
International ports