The Panama Canal Expansion & the Impact on Global Trade & Supply Chains

John Raulerson

Get ready for the “big ditch”, to the south to open in 2014. The much anticipated passageway connecting more than just two oceans but the entire planet. I am astounded that the very opening of this passage through the Country of Panama is setting every port on the Eastern Seaboard in motion to prepare for the “post” Panamanic ships able to carry more cargo than most small countries posses in total. These massive ships will carry twenty-two layers across the girth of the ship. Wow Asia is really confident of America’s and Europe’s consumption. Nevertheless, the Panama Canal is the future of cargo movement to America and the World, which brings many opportunities.
Recently, I attended the inaugural MODEX Show in Atlanta Georgia an event historically held in Cleveland Ohio but due to the changing dynamics of the opening of the Panama Canal unfolds, the Material Handling Industry of America (MHIA) sponsored event relocated to the strategically located Atlanta Georgia. Atlanta is the focal point of trade and commerce for the southeastern United States. Atlanta was an incredible location and a great city to spend time. The overwhelming theme of the entire show was the Panama Canal opening.
I had the pleasure to attend many informative seminars, however, by far the most beneficial meeting was on a Tuesday with the CEO of the Panama Canal Authority, Director Alberto Aleman Zubieta. Mr Zubieta is a dynamic man and speaker. Mr. Zubieta spoke from the heart and the cuff and is very well versed on the impact of the Panama Canal expansion project and the results the expansion will have on the United States and the World. Although very light-hearted, funny and entertaining Mr. Zubieta became extremely serious and focused in an instant when speaking of matters of importance such as infrastructure improvements of port facilities throughout the United States. The call to action for port widening and port upgrades left a resounding effect with every person in the room. The expansion of the Panama Canal is certain to change global freight movement and open up new opportunities, yet the question still remains as to how and when the changes will effect commerce. Additionally, Mr. Zubieta discussed in great detail the benefits to importers and exporters, alike, for increased and immediate improvements to America’s infrastructure. No question about it the Panama Canal expansion project is a “game changer” for supply chain operations.
Consolidated Rigging & Marine Supply has been proactive in positioning for this change for years. Strategically located near all of the major ports that accommodate these import and export markets. Consolidated Rigging & Marine Supply is headquartered just a few miles from Jacksonville Port Authority and even graciously sold our original properties to Jacksonville Port Authority when it was time for their expansion process over fifteen years ago. Our branch office in Savannah Georgia is within one mile of the Georgia Port Authority. With other branch locations in Coconut Creek Florida and Tampa Florida. Easily accessible and with all of the rigging and marine supply equipment in stock and available. Consolidated Rigging even has a representative sales staff in Panama. Just give us a call if you need service onsite in Panama as well we can make it happen.
“According to the MHIA, as much as twenty five percent of trade could shift from the West Coast once the expansion project is complete in Panama, as five new terminals in the Gulf and East Coast are currently scheduled to open, while only two are planned for the West Coast. The Panama Canal expansion, which will accommodate 12,000-TEU(twenty-foot Equialent Units) ships, is set to reshape global trade patterns.” ILH, Richard Howes. “The Panama Canal expansion also will enable companies to export products to markets that were previously prohibitively expensive and that could result in the need of additional barges and other forms of transportation equipment.
Material handling has a role to play at every turn of the supply chain. Not only will it handle product for transportation itself, but water and land-going vehicles will need building and maintaining. It truly could be an era of opportunity for users and suppliers alike.” ILH, Richard Howes
Of course, Consolidated Rigging will be here to supply your operation with the proper lifting and rigging equipment as well as fall protection and rigging training for all of the new personnel needed to handle the massive amount of cargo.
The future is truly before all of us and in my view the future can and will be very bright.

John Raulerson

jraulerson@consolidatedrigging.com