The impact of the expanded Panama Canal on port range choice for cargo flows from the U.S. to Europe

Edwin van Hassel, Hilde Meersman, Eddy Van de Voorde and Thierry Vanelslander

Maritime Policy & Management, 2021, vol. 48, issue 5, 610-628

Abstract: The works to double the capacity of the Panama Canal were completed in 2016. This may have significant implications on the maritime flows of goods, both locally and on international shipping routes between the US, Asia and Europe. This paper examines the impact of the expanded Panama Canal on potential shifts of cargo flows from different port regions in either the US or Europe via different case studies. The analysis uses a model designed for calculating the generalised cost of transporting a container from origin to destination. This model has been extended with more detailed geographical coverage for the US and additional functionalities. From the different performed case studies, before and after the expansion of the Panama Canal, for cargo flows form the US to Europe, it can be concluded that there is an effect of the new Panama Canal on the port range selection, in both the US and even, to a lesser extent, also in Europe. This article is a revised and expanded version of a paper entitled Impact of the new Panama Canal on the competitiveness of the Hamburg - Le Havre range ports presented at the 44th European Transport Conference 2016, 05-07 October, 2016, Barcelona, Spain.

Date: 2021
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DOI: 10.1080/03088839.2020.1718230

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