HOW MUCH MORE CARGO WILL THE PANAMA CANAL BRING TO

THE US EAST COAST?

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ABOUTXENETA

At Xeneta we believe there is an untapped potential for everyone in the industry, to systematically learn from our individual and collective efforts. We hold true that "if you cannot measure it, you cannot improve it". That’s why we think actionable metrics is the key to continuously evolve for every business, and ultimately the entire industry. Rethinking global logistics is the vision of Xeneta.

With international experience from the logistics industry, we have first-hand knowledge of the challenges related to high volatility and lack of transparency in the ocean freight market. By combining logistics background and information technology expertise, we found the solution to these challenges.

WE ARE TRANSFORMING GLOBAL LOGISTICS

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

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JUNE 26, 2016

THE EXPANDED PANAMA CANAL OFFICIALLY OPENED WITH MUCH FANFARE.

VESSELS HOLDING 5,000 TO 14,000 CONTAINERS ARE NOW ABLE TO PASS THROUGH ITS CHANNEL THUS ALLOWING FOR GREATER OPPORTUNITIES FOR MORE US PORTS.

DIVERSION OF CONTAINER TRAFFIC IS EXPECTED FROM

THE US WEST COAST TO THE GULF

AND EAST COAST PORTS.

IN THE LATEST TWITTER SURVEY, WE ASKED IF

THE RESULTS WERE MIXED AS MANY PEOPLE REMAIN UNCERTAIN OF WHAT TO EXPECT HOWEVER, THE MAJORITY OF RESPONDENTS, 36% OF THE TOTAL RESPONSES, BELIEVED 1% TO 7% OF CONTAINER VOLUME COULD TRANSFER AWAY FROM THE WEST COAST PORTS.

THIS WAS FOLLOWED WITH 28% OF RESPONDENTS INDICATING THAT MORE THAN 15% OF CONTAINER VOLUME COULD BE DIVERTED TO GULF AND EAST COAST PORTS WHILE 27% NOTED AN 8% TO 14% DIVERSION AND 9% OF RESPONSES INDICATING THERE WILL BE NO DIVERSION.

HOW MUCH MORE CARGO WILL THE

PANAMA CANAL BRING TO THE US EAST COAST?

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

THE EXPANDED PANAMA CANAL OFFICIALLY OPENED WITH MUCH FANFARE.

CLEARLY NO ONE IS SURE WHAT TO EXPECT BUT ONE THING IS CERTAIN, THE MAJORITY OF US GULF AND EAST COAST PORTS ARE NOT PREPARED FOR THE MEGA-SHIPS THAT CAN NOW TRANSIT THROUGH THE CANAL.

THE RESULTS WERE MIXED AS MANY PEOPLE REMAIN UNCERTAIN OF WHAT TO EXPECT HOWEVER, THE MAJORITY OF RESPONDENTS, 36% OF THE TOTAL RESPONSES, BELIEVED 1% TO 7% OF CONTAINER VOLUME COULD TRANSFER AWAY FROM THE WEST COAST PORTS.

IT IS LIKELY FOR THE TIME BEING AT LEAST, SMALLER VESSELS WILL BE RESPONSIBLE FOR THESE ANTICIPATED DIVERSIONS WHILE THE GULF AND EAST COAST PORTS SCRAMBLE TO FINISH INFRASTRUCTURE PROJECTS TO WELCOME THE MEGA-SHIPS.

THE SAVANNAH PORT HAS INVESTED AT LEAST $706 MILLION TO DREDGE ITS WATERWAYS USED BY CARGO SHIPS WHILE THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY IS INVESTING $1.3 BILLION TO RAISE A BRIDGE FOR THE NEW, LARGER SHIPS.

THE US WEST COAST PORTS DO NOT APPEAR TO BE OVERLY CONCERNED BY THIS POTENTIAL DIVERSION. IN FACT, THE TWO LARGEST PORTS, LOS ANGELES AND LONG BEACH ARE ALREADY PREPARING FOR THE NEXT GENERATION OF VESSELS THAT CAN HOLD UP TO 21,000 CONTAINERS, WHICH THE PANAMA CANAL CANNOT HANDLE.

STAYTUNEDWHO WILL BE AMONG THE WINNERS? STAY TUNED FOR A NEW BLOG POST NEXT WEEK GIVING AN OVERVIEW ON JUST THAT

WANT TO KNOW HOW SHIPPING PRICES DEVELOPED IN Q2 2016?

JOIN US JULY 14, (15:00CET/9AM EST) FOR OUR LIVE WEBINAR "Q2 2016 OCEAN FREIGHT SHIPPING

PRICES AT A GLANCE."

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INTELLIGENCE INTO YOUR GLOBAL OCEAN FREIGHT PRICES AND CHANGE YOUR LOGISTICS

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