Just over a year ago, on June 26, 2016, the Panama Canal expansion plan was completed. The expansion opened up new opportunities for efficient shipping processes. The canal was widened by 70 feet and is 18 feet deeper than what it was, to begin with. Even with this expansion, the canal uses less water because 60% of the water is recycled. 

Here at Louisville Switching, we have been keeping a close watch on the entire Panama Canal expansion project because we were sure the opening would help improve shipping efforts. It appears that our assumptions were correct! 

The Panama Canal

We discussed the full additions and information in our blog last year when the updates were first made. This visual from Maersk helps provide some real insight to the difference that the expansion made in terms of shipping. As you can see, the ship sizes have increased, the amount of water required has decreased, and the overall capabilities have drastically grown! This expansion has improved efficiency and is saving companies money due to the products not having to sit in distribution warehouses as long.

Now, might be the best time to bring the conversation about around to our company because while we don't have dealings with the shipping side of things, but many of our customers do. It is important to us to keep up with the changes in the shipping industry so that we are aware of all of the challenges that could be potentially facing our partners. 

The improvements that were made to the efficiency of the canal helps not only the shipping industry but the end consumer as well. In theory, lower shipping times and costs will be passed along to the end user. 

Facts about the Panama Canal:

• The idea for a canal across Panama dates back to the 16th century.
• The men behind the Suez Canal and Eiffel Tower were convicted in connection with a failed effort to build a canal.
• America originally wanted to build a canal in Nicaragua, not Panama.
• More than 25,000 workers died during the canal’s construction.
• Between 13,000 and 14,000 ships use the canal every year.
• The United States transferred control of the canal to Panama in 1999.
• You can walk across the gates.
• The Panama Canal was one of the first projects to use concrete.
• The biggest users of the canal are the United States and China.

Here at Louisville Switching, we actively follow the transportation industry news and are pleased to be able to share with you the news as we learn it. Want to read more updates and news? Check out our blog.