Trade Alert: Panama Canal Expansion Will Double Capacity

June 12, 2015 – The Panama Canal expansion project, or as it has been dubbed, the Third Set of Locks Project is intended to double the capacity of the Panama Canal by early 2016.

Peter Tirschwell, Senior Director Content, IHS Maritime and Trade, has reported that the opening of the third set of locks, currently set for April 2016, will overnight unlock the canal to 45 percent of the total container ship fleet —1,331 ships representing roughly 10 million twenty-foot equivalent units of capacity that is in service or on order.

Since the route to Panama can cut about 4 days of travel time (compared to going through the Suez), it is expected that carriers from Asia will take this route to save time and money.

How It Affects Your Business

• The expansion will allow larger vessels from Asia to use this routing to U.S. East Coast ports.
• The result is: a triple win for shippers. More all water capacity from Asia to the US East Coast at lower cost and slightly faster transit times.

How You Should Handle It

• Stay in communication with your carriers and provider partners to take advantage of the Panama expansion.
• Be proactive and plan ahead for this future route.

Have more questions about how your business can respond to these changes? Contact LEGACY today.