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Inward Investment Guides
Effects of Pananma Canal Epansion on U.S. Logistics
How will the Panama Canal expansion potentially help and harm the U.S. shipping industry?
Adam Wasserman, Partner, PortCentric Logistics Partners LLC
The impact of the Panama Canal is one of those great logistics system mysteries. Ask ten people about its future-tense importance and impact and you will without question hear ten very different answers. We believe that the Canal will be an increasingly important element to our national logistics capabilities, but the timing and extent of that effect is not quite clear. The Canal can reduce shipping cost in some instances and increase reliability to cargo movements to certain parts of the country. How this occurs will depend on the mutual sentiment of ocean carriers, 3PL's and shippers. That will play itself out, but it has to be a good thing for our country that we have a series of cargo movement options for shippers in different parts of the country. To the contrary opinion of many, things can and will change and the world is not at all static. We have grown to believe that things cannot change, but the reality of a complex world economy is that change will occur and new solutions will end up as a benefit. In terms of downside, there is a strong possibility that because of a lack of coordination that there will be overbuilding of logistics assets in the wrong places and that the cost of that inefficiency could be passed on to shippers.
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