Research conducted last year by CH Robinson and Boston Consulting Group on the trade impacts of the canal expansion found that up to 10% of container traffic to the US from East Asia could shift from west to east coast ports by 2020, adding that increased use of transhipment in the Caribbean could magnify this trend.
Caribbean ports will be hopeful of an upturn in transhipment cargo. Panama, in particular, is positioning itself as a regional transhipment and value-added logistics hub.
It remains to be seen whether the economies of scale gained from deploying larger vessels, and the resulting increase in transhipment will translate to lower reefer rates for perishable shippers. And while Panama could be a big beneficiary by operating as a regional hub for cold chain logistics services, some shippers will undoubtedly be concerned by longer transit times and the added handling risks associated with transhipment.
