Panama Canal Expansion Spurs Growth in the Shipping Market and Beyond

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

By: IBISWorld 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.

Related Articles

  • Best Practices & Case Studies

Contract Renewal: Is this Price Increase Justified?

  • Evaluate Supply Market , Negotiate, Set Strategy , Contract Renewal, Market Research, Market Intelligence
  • Market News

Honeywell to Sell Off Two of its Lucrative Business Units

  • Evaluate Supply Market , Identify Suppliers, Set Strategy
  • Articles & Insights

OPEC Cuts While U.S. Shale Booms: The Effects on Oil’s Supply Chain

  • Evaluate Supply Market , Save Money, Set Strategy
  • Market News

Firms Rally Against the FCC on Net Neutrality Day of Action

  • Evaluate Supply Market , Set Strategy
  • Market News

Proposed Regulation Rollbacks Renew the Net Neutrality Debate

  • Evaluate Supply Market , Save Money, Set Strategy , Regulation, Net Neutality, Internet Services