-Diana Margalef-

Hello everybody, I’m sure you have listened about the Panama Canal but have you have thought about the implication in logistics? I have found this interesting article in which it’s explained how logistics work with it.

Panama Canal has had a final price of 5.25 billions. However, Panama Canal can now accommodate ships that are one third larger than before. These megaships carry 45 percent of the world’s cargo and will be able to take shorter routes and save an average of $3,600 per cargo shipment, affording both businesses and consumers better prices, reduced carbon emissions, and faster delivery.

Companies now, particularly those located in the southeast US, are re-thinking trade routes and investing in new infrastructure to take advantage of the expansion of the Panama Canal.

But which are the implications in the Supply chain? It’s important to think in terms of intermodal infrastructure: moving containers from ship to rail to truck. For example, Flagler Global Logistics fumigated blueberries and then transported them through Philadelphia. The blueberries come from South America and were previously transported via steamships to Philadelphia and then trucked down to Florida. The company can now import blueberries and fumigate them in Florida. The blueberries wind up in grocery stores a week earlier and stay fresh longer.

The new Panama Canal can help bring twice as many cargo containers through Philadelphia (estimated 8,000 to 9,400 20-foot containers). Philadelphia isn’t the only city that’s benefiting; this monumental expansion has huge impacts in port cities throughout the United States.

And which is the best way to leverage the expansion? Taking into consideration three main matters to consider, including establishing operations in port cities, upgrading supply chain infrastructure, and investing in business infrastructure.