According to the Wall Street Journal, the giant Panama Canal expansion opens June 26 amid much fanfare and one of the worst shipping industry slumps ever. While it won’t do anything to help the dire state of the industry near-term, the changes are critical to Western trade in the long run.
The canal, which handles about a third of Asia-to-Americas trade, had no choice but to expand. As the industry copes with its downturn, major shipping companies are pooling their resources and using fewer but much bigger ships—ones that are too large to fit through the pre-expansion Panama Canal
The Panama Canal’s New Expansion, Explained
The nine-year, $5.4 billion expansion more than doubles the canal’s cargo capacity. A third lane has been added to the canal that accommodates ships large enough to carry up to 14,000 containers, compared with around 5,000 currently. This alleviates a cargo bottleneck caused by the smaller ships that was due to get worse over time.
The expansion makes the Panama Canal more competitive with the Suez Canal in Egypt, shortening the one-way journey by sea from Asia to the U.S. East Coast by roughly five days and eliminating the need for a trip around Cape Horn to get to the Atlantic.
more recommended stories
Yucatecan honey, a symbol of flavor and quality
Yucatan is the main producer and.
Profepa rescues jaguar without fangs or paws in Central Mexico
The Federal Prosecutor for Environmental Protection.
The Impact of President Trump on Re-emerging Markets
With his plans to build a.
Crime is prevented with education in Mérida, Yucatán
Municipal police will initiate a training.
On his 82nd birthday, Pope Francis gives out 3,000 ice creams to Rome’s poor and homeless
According to The Local Italia, Pope.
OPINION: There are obvious signs of a crisis with López Obrador as president
Enrique Campos Suárez journalist, politics expert,.
April 23: World Book and Copyright Day
April 23rd is a symbolic date.
Mexico holds its first presidential debate for July election
MEXICO CITY — According to the.
Yucatecan food caused a big sensation at Tianguis Turístico 2018
Cochinita pibil, one of the most.
Peña Nieto signed the declaration of Special Economic Zone of Campeche and Tabasco
On April 17, President Enrique Peña.