Innovating Newsletter: Panama Canal Trans-Pacific Performance
Dec. 27, 2018
In 2016, the Panama Canal completed its expansion project to increase vessel capacity by widening existing channels as well as adding a new lane of traffic. Over the last year, volumes have been increasing through the Panama Canal and shippers have been comparing routes from Asia to the US East Coast as waves of tariffs are implemented. In this month’s issue of Innovating, we took the opportunity to study the performance of vessels through the Panama Canal during two periods after the expansion, from June to November in 2017 and June to November in 2018. We also reviewed carriers’ schedule reliability in November and analyzed the impact of protests at Jawaharlal Nehru Port in India.
- Panama Canal – Trans-Pacific Performance: Overall, performance of vessels along the routes from Port Klang, Shanghai, and Tokyo to Savannah through the Panama Canal improved when comparing June through November in 2017 and 2018. Even though there were slightly more vessels and a 42% increase in mega vessels, transit times to go through the canal improved and overall monthly average vessel arrival delays shortened. Comparing the transit times of the three port pairs, vessels from Tokyo to Savannah had some of the shortest average transit times and improved the most from 2017 to 2018.
- Carrier Reliability Report: We reviewed the schedule reliability of 20 ocean carriers across 25 trade lanes. Overall reliability increased by 5.3%, from 61.3% in October to 66.6% in November.
- World Incidents – Port Protests: We analyzed the impact of ongoing protests at Jawaharlal Nehru Port. We found that the strikes had an impact on vessel arrival delays and berth times in November, with vessels needing to spend on average an extra seven hours for cargo discharging and loading on November 15-16 during the protests.
December report for detail