Study on the Impact of the Panama Canal Expansion on the Distribution of Container Liner Routes

Hanxun Fan,Weihong Gu

doi:10.4236/jtts.2019.92013

Abstract

The expansion of the Panama Canal will have a profound impact on the container shipping route network, port layout and ship structure, and promote the evolution of the global shipping pattern. However, most of the research on the expansion of the Panama Canal currently stays before its real expansion, and the quantitative analysis is less and the result is not accurate, because previous research used data that expanded before. Based on the actual data after the expansion of the Panama Canal, this paper uses the dual-target route distribution model to analyze the expansion of the Panama Canal. The changes in the liner shipping plan that have a greater impact on the shipping industry will provide the relevant theoretical basis for the relevant entities. The results show that after the expansion of the Panama Canal, the largest 15,000 TEU container ship is currently deployed on the route through the Panama Canal. 6500 TEU ship type is also deployed on the route through the Panama Canal. The 8500 TEU, 10,500 TEU, and 12,500 TEU ship types are mainly deployed through the Suez Canal. On the route, such a distribution plan can maximize the benefits for the shipping company.

Highlights

The Panama Canal is located in Panama, Central America, across the Isthmus of Panama, connecting the Pacific Ocean and the Atlantic Ocean
The results show that after the expansion of the Panama Canal, the largest 15,000 TEU container ship is currently deployed on the route through the Panama Canal. 6500 TEU ship type is deployed on the route through the Panama Canal
This type of distribution plan can maximize economic benefits. It can be seen from the results of the ship distribution that after the expansion of the Panama Canal, the large container ships will be deployed on the routes through the Panama Canal to obtain greater economic benefits [16] [17] [18]

Summary

Introduction

The Panama Canal is located in Panama, Central America, across the Isthmus of Panama, connecting the Pacific Ocean and the Atlantic Ocean It is an important shipping route and is known as one of the Seven Wonders of the World and the “World Bridge”. Chinese scholars have analyzed the impact of the expansion of the Panama Canal on international trade, liner shipping and shipping from a qualitative perspective. The current prosperity of international trade is closely related to the transportation of container containers the liner shipping of containers is the most able to reflect the impact of the Panama Canal on the expansion of Sino-US shipping.

Scenario Description and Model Building

Empirical Analysis

Various Types of Ship Parameters

Route Cost of Various Ship Types

Findings

Conclusions