Panama Canal Expansion Spurs Growth in the Shipping Market and Beyond

Categories : Procurement Stages | Evaluate Supply Market | Set Strategy Published on : Nov 28 2017

By: ProcurementIQ Analyst, Ashley Cruz

For 103 years, the Panama Canal has been a crucial conduit of international cargo transportation, saving shippers up to two weeks in transit times and thousands of dollars in transportation costs, compared to other routes. However, in the past decade, rising globalization has pushed shipping volumes upward, creating a need for bigger, more fuel-efficient vessels. The ensuing rise of so-called “megaships” has necessitated larger port and canal infrastructure to handle larger ship sizes and capacities. Thus, in June of 2016, a $5.3-billion Panama Canal expansion project was finally completed, adding a third set of locks that are deep and wide enough to accommodate megaships of up to 14,000 twenty-foot equivalent units (TEUs). As a result, these newly termed “neo-Panamax” ships can now travel to ports that were previously inaccessible, creating a ripple effect of downstream changes at both the ports of entry and throughout the shipping supply chain.

More from Procurement Insider

  • Articles & Insights

Tightening Supply for Environmentally-Friendly Silicone

  • Evaluate Supply Market , Assess Opportunity, Set Strategy , plastics, silicone, environmental issues, plastic alternatives
  • Articles & Insights

Bans Affect Demand for Chemicals

  • Evaluate Supply Market , Reduce Risk, Set Strategy , Chemicals, Plastics, Regulation, Environmental Policy
  • Market News

3D Printing to Revolutionize MaaS

  • Evaluate Supply Market , Save Time, Save Money , 3D printing, Manufacturing, Manufacturing as a Service
  • Market News

Supply Chains Enter the Blockchain Era

  • Evaluate Supply Market , Implement & Measure, Reduce Risk , Blockchain, Smart Contracts, Contract Management