Next year’s opening of the R62-billion Panama Canal expansion will switch US-bound container cargoes from the US west coast ports to those on the east coast, according to a study by Boston Consulting Group and CH Robinson.
Its findings predicted that it will turn from 35% of container traffic from the Far East to the US arriving at east coast ports in 2014 into 50% by 2020.
The Panama expansion will allow the passage of the bigger postpanamax containerships, which, at up-to 13 000 TEU capacity, will dwarf the current 5 000 TEU maximum permissibles.
So the east coast ports will become more cost-competitive for these bigger ships, based on the “by water is cheaper” market truth.
The extra traffic will be snatched in a “bigger ships is lower rates” raid from the cargo presently travelling by the inland railways from the west coast ports across into areas of the US which are truly in east coast ports’ territory – an option which, from next year’s canal opening, will only compete where speed is an essential, the study concluded.
West-east switch for Asia-US boxes
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