East Coast vs. West Coast: The impact of the Panama Canal’s expansion on the routing of Asian imports into the United States

Camil Martinez, Adams B. Steven and Martin Dresner

Transportation Research Part E: Logistics and Transportation Review, 2016, vol. 91, issue C, 274-289

Abstract: Asian firms shipping to inland US points choose between West and East Coast ports. West Coast shipments often have lower transit times but higher freight charges. To investigate factors affecting this routing decision, a coast choice model is estimated. Results are then used to project shifts in demand with the coming completion of the Panama Canal expansion. Our simulations show that if the Panama Canal expansion generates significant transit time savings on shipments from Asia, as projected, that there will be major shifts in traffic from West to East Coast ports, raising important policy implications for port operators on both coasts.

Date: 2016
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DOI: 10.1016/j.tre.2016.04.012

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