Panama Canal modifications affect U.S. logisitcs

Sitting watching a huge container ship in the glide up the Savannah River toward the Port of Savannah, Georgia, gave me a new perspective on container ships… They are HUGE. They make shipping containers look like Legos.

Container Ship

Container Ship

A friendly visitor seated next to me talked about how the Corps of Engineers was dredging the river to accommodate the new super containers ships that would soon be able to pass through the widened Panama Canal.

A little research made me again marvel the inter-connectivity of our world. Currently, most of the goods shipped to the US from Asia go to a West Cost port. They are then offloaded and moved inland via truck or rail. Once the Panama Canal is widened shipping rates to the East Coast will be reduced because the new ships can carry about twice as many containers. This will mean that containers destined for Memphis or Chicago may actually transit Panama and make port in Savannah or Charleston.

Wow… a “little” change about 1600 miles away can have a major effect on business activity here.