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Logistical rivalries and port competition for container flows to US markets: Impacts of changes in Canada's logistics system and expansion of the Panama Canal

Author

Listed:
  • Lei Fan

    (Transportation & Logistics Program, North Dakota State University, Fargo, ND 58102, USA.)

  • William W Wilson

    (Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND 58105, USA.)

  • Denver Tolliver

    (Transportation & Logistics Program, North Dakota State University, Fargo, ND 58105, USA.)

Abstract

Shipments of container imports are heavily concentrated in a number of ports, which has resulted in pressures on logistics networks. Partly in response to such pressures, several new routes are being developed to gain access to US markets. One involves the port of Prince Rupert; the other is the expansion of the Panama Canal. The purpose of this article is to estimate prospective traffic flows through these logistics channels for container shipments to US markets. An optimization model is developed that accounts for congestion and demand uncertainty. It determines the optimal route, ship size, port and hinterland shipping channels based on cost minimization. Our results show that inter-port competition is very intense. Prince Rupert can become an important rival of US ports and routes and the expansion of the Panama Canal can have similar impacts.

Suggested Citation

  • Lei Fan & William W Wilson & Denver Tolliver, 2009. "Logistical rivalries and port competition for container flows to US markets: Impacts of changes in Canada's logistics system and expansion of the Panama Canal," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 11(4), pages 327-357, December.
    • Handle: RePEc:pal:marecl:v:11:y:2009:i:4:p:327-357
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    Citations

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    Cited by:

    1. Thi Yen Pham & Ki Young Kim & Gi-Tae YEO, 2018. "The Panama Canal Expansion and Its Impact on East–West Liner Shipping Route Selection," Sustainability, MDPI, vol. 10(12), pages 1-16, November.
    2. Fan, Lei & Wilson, William W. & Dahl, Bruce, 2012. "Congestion, port expansion and spatial competition for US container imports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1121-1136.
    3. Ryuichi Shibasaki & Takayuki Iijima & Taiji Kawakami & Takashi Kadono & Tatsuyuki Shishido, 2017. "Network assignment model of integrating maritime and hinterland container shipping: application to Central America," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(2), pages 234-273, June.
    4. Martinez, Camil & Steven, Adams B. & Dresner, Martin, 2016. "East Coast vs. West Coast: The impact of the Panama Canal’s expansion on the routing of Asian imports into the United States," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 274-289.
    5. Yip, Tsz Leung & Wong, Mei Chi, 2015. "The Nicaragua Canal: scenarios of its future roles," Journal of Transport Geography, Elsevier, vol. 43(C), pages 1-13.
    6. Manuel Herrera & Per J. Agrell & Casiano Manrique-de-Lara-Peñate & Lourdes Trujillo, 2017. "Vessel capacity restrictions in the fleet deployment problem: an application to the Panama Canal," Annals of Operations Research, Springer, vol. 253(2), pages 845-869, June.
    7. Jihong Chen & Theo Notteboom & Xiang Liu & Hang Yu & Nikitas Nikitakos & Chen Yang, 2019. "The Nicaragua Canal: potential impact on international shipping and its attendant challenges," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(1), pages 79-98, March.
    8. Monios, Jason & Lambert, Bruce, 2013. "The Heartland Intermodal Corridor: public private partnerships and the transformation of institutional settings," Journal of Transport Geography, Elsevier, vol. 27(C), pages 36-45.

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