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Logistics in Panama Canal | XL Logistics Blog

Changing Logistics in the Panama Canal

Posted on 12. Sep, 2013 by in 3pl

The Panama Canal is a 48 mile-long international trading route which allows ships to navigate between the Atlantic and Pacific Oceans. This shortcut saves ships approximately 8000 miles. However, oil supertankers, aircraft carriers, and military battle ships cannot fit through. There are ships called the “Panamax” that were built to the maximum capacity of the canal. In 2007, a new project to expand the canal began and it will be completed by 2015. This new development will bring changes in the logistics in Panama Canal.

The new class of ships that will be able to use this waterway are called “Post Panamax” ships and they are twice as big as their predecessors. Once the change is made, more freight will be stored on the Midwest and the East Coast. This means that the shipping will have lower costs and there will need to be more factories and distribution centers. More inventories will be stored closer to the cities on the East Coast. The “Post Panamax” ships are more eco-friendly as they have a smaller carbon footprint as well.

These changing logistics in the Panama Canal do not merely affect shipping. Bridges will need to be expanded to allow the larger ships to pass through. Freight yards will need to be enlarged. Railroads will have to improve their capabilities as well. The new ships will be able to carry more goods back to Asia than ever before. Plus, more trade will occur between South America, North America and Asia. The economic impact of all of these changes will be vast.

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