Authorities Expect Shipping Volumes to Increase after the Expanded Panama Canal’s Inauguration on Sunday Tag:US
The expanded Panama Canal will open during the weekend and that means larger vessels can enter through the route more frequently tapping into the rapidly growing Asia-Pacific consumer markets. Larger ships not only mean higher capacity of goods but also more jobs and larger paydays for the various commodity producers.
As the Panama Canal Authority estimates, the expanded Panama Canal will lessen sailing times between the ports on Atlantic Ocean and Asia by as much as sixteen days for those vessels that could not earlier pass through the canal.
Among the people who will be most benefited are container shippers, soybean farmers, natural gas producers as well as coal miners. However, the iron ore exporters and crude oil exporters would not enjoy the benefits of the expanded canal as they would still have to follow the longer route as the vessels are too big to travel through the waterway.
The expanded canal's inauguration is scheduled on Sunday. The project almost cost $5.2 billion and was completed after about a delay of two years.
In the mid 2000's there was a slump in shipping volumes through the Panama Canal mostly as Chinese trade increased and the vessels grew too large to pass through the water way.
After the expansion, the Canal Authority expects the tonnage volumes to rise at an average of three percent every year compared to roughly 341 million tons noted in 2015.
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