Panama Canal Expansion to Impact the Container and Cruise Industry

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New Maersk Line 18,000 TEU Container Ship Currently Under Construction

Off Topic, the Panama Canal is undergoing a major expansion project costing some $5.25 billion dollars. the project will allow container ships in excess of 12,500 Twenty Foot Equivalent Units (TEU) to use the canal. Today the limit is about 4,400 TEU container ships.

The increase capacity of the canal will shift major container traffic from West Coast port to US East and Gulf ports.

For the cruise industry this means that the Mega-Cruise ships from today may not need to make the 7,800 mile circumnavigation of the South America (from San Francisco to New York). Imagine the transit costs for the Queen Mary 2 to pass through the Canal!

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