Panama Canal's widening shows improvements for Global Shipping efficiency.

Recently announced by Panama Canal authorities, after the close of the 2017 fiscal year, was news that it’s waterways welcomed a record high 403.8 tons this past year. This is the largest amount to ever be transported via the canal in its 103 years of existence.

After an expansion of the canal, transportation of larger vessels has been a normality, and this has resulted in a 3.3 percent growth of total vessels transited from the previous fiscal year.

“The past year’s results also include many significant milestones. Less than eight months after inauguration of the Expanded Canal, it welcomed the YM Unity containership, its 500th Neopanamax vessel transit. In March 2017, Mediterranean Shipping Company’s MSC Anzu became the 1000th Neopanamax vessel to transit the Canal. The September 2017 transit of the COSCO Yantian containership marked 2,000 Neopanamax transits” (Burnson 2017).

With so many advancements in the shipping and transportation capabilities on the Panama Canal, one could assume that there will be scaling impact in the logistics of global supply chains that utilize its waterways on a daily basis.

The impact has already spread amongst ports along the east coast of the United States, as many set records of their own for tonnage of cargo received.

Analysts from global trade consultancy firm, Panjiva, have taken note of the increased traffic and have realized a “step forward” in the efficiency of shipping traffic globally.

“Our data shows shipments to southeast ports increased by 26.9 % on a year earlier, while those to California increased by a more modest 7.7 %,” states Chris Rogers, analyst from Panjiva.

The further development of the Panama Canal’s widened waters will be exciting to keep an eye on, regarding the efficiency of global supply chains.

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