The opening of the expanded Panama Canal took place this week and marks a major development in the export industry and global economy. Mike Steenhoek with the Soy Transportation Coalition attended the inaugural transit. He says the original Canal was able to accommodate Panamax vessels, but the new channel will allow PosPanamax ships up to twice the size of the traditional vessel.
The new third lane of the Canal will be able to handle 10 to 12 ships per day, added to the 40 shipments through the original two lanes. The new lock is 1,400 feet long, 180 feet wide and 60 feet deep.
He says the increased volume the ships will be able to carry through the Canal will provide a significant cost savings to exporters.
As a result of this savings, Steenhoek says there will be some shift in soybean export business to the Canal from the Pacific Northwest ports, which have been a direct link to China. And this will require all players in the transportation system to become more competitive.
However, he says the PNW will still play an important role in exports, especially for farmers in the western corn belt, with advantage of faster shipping times to China.
