Maritime Agency Report Assesses Canal Expansion
The Maritime Administration has released a Panama Canal expansion report that tentatively concluded that increased competition would lower freight costs through East Coast and West Coast ports once larger ships can use the waterway.
The 202-page report published last week by the Transportation Department’s marine policy unit said “the savings realized by ocean carriers depend on many factors,” including tolls and vessel routing.
It concluded that the canal expansion, to be completed in 2015, could most affect trade and shipping patterns for states such as Ohio, Kentucky and Tennessee.
“The ways that shippers will respond to cost savings are an important factor in determining the impact of Panama Canal expansion on U.S. ports,” the report said.
Factors that shape the effect of the expansion include the readiness of ports to accept larger ships, the prospect of fewer port calls by those vessels and the outlook for marine highways to move feeder cargo to and from larger ports, MarAd said.
