The latest toll increase proposals through the Panama Canal are causing worried frowns on the US East Coast, while the West Coast is more complacent than ever over its importance after 2014.
The International chamber of shipping calls the proposals for a 15 percent hike, which could come in from July 1, “rushed, excessive and likely to cause further problems.” Shippers are starting to say that they will take a fresh look at all-water routes, which is making the railroads feel happier (because the more traffic that goes through the west Coast, the more that will go by rail).
Huge bets are being placed on the post-2014 effect, with the East Coast shoveling in about $5 billion in harbor dredging and new terminals (quite apart from the joint Georgia-South Carolina project at Craney Island.) Charleston, for example, says its whole future hinges on the canal, while Florida is trying to get a greater share of regional cargo that at the moment goes through the west coast.
Meanwhile, Southern California steams at a steady snail’s pace with such projects as Middle Harbor. Port bosses say publicly that LA/Long Beach will be as dominant as ever, in effect telling the East Coast to go twiddle its thumbs.