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Panama Canal Expansion

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American ports set record volumes as Panama Canal widening approaches first anniversary Ports across the southern US are reporting record trade volumes as the benefits of the huge Panama Canal widening project start to bear fruit almost one year on from its official opening. Furthermore, discussions are ongoing for changes to the Canal’s toll structure, and the conclusions and recommendations will be released later in the year. In a separate development, Panama has cut off diplomatic relations with Taiwan in favour of Beijing, which could have implications for Chinese shipping through the Canal and logistics projects in the surrounding area. The Panama Canal Expansion Project took nine years to complete and cost about $5.4 billion. It was …show more content…

However, after almost one complete year of operation, ports in South Carolina are witnessing growth of 9.4% in terms of volumes handled, while ports in Georgia and Virginia, which rank among the country’s largest, broke all records during May, as stated in Bloomberg. Alabama is also reporting larger container ships and volumes, partly on the back of shipping lines Maersk and Mediterranean Shipping Co. now providing a weekly service to Asia. The chief executive of South Carolina Ports Authority even expressed astonishment at the extent of the upturn in demand at his state’s ports. One of the major factors behind this upturn in trade at southern American ports is undoubtedly the widened Panama Canal, although other factors, such as a booming population in the South and an uplift in US manufacturing also contribute to the uptick in shipments. However, it will be years before the long-term implications are fully understood, such as what percentage of freight which was previously shipped to the west will now land at east coast ports, while the implications for international shipping could take even longer to play out. The Panama Canal Authority reports that each month records are being set, witnessed by the container vessel OOCL France passing through in May, the largest ever to

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