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East Coast vs. West Coast: The impact of the Panama Canal’s expansion on the routing of Asian imports into the United States

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  • Martinez, Camil
  • Steven, Adams B.
  • Dresner, Martin

Abstract

Asian firms shipping to inland US points choose between West and East Coast ports. West Coast shipments often have lower transit times but higher freight charges. To investigate factors affecting this routing decision, a coast choice model is estimated. Results are then used to project shifts in demand with the coming completion of the Panama Canal expansion. Our simulations show that if the Panama Canal expansion generates significant transit time savings on shipments from Asia, as projected, that there will be major shifts in traffic from West to East Coast ports, raising important policy implications for port operators on both coasts.

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  • 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.
    • Handle: RePEc:eee:transe:v:91:y:2016:i:c:p:274-289
    DOI: 10.1016/j.tre.2016.04.012
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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. Kahuina Miller & Tetsuro Hyodo, 2021. "Impact of the Panama Canal expansion on Latin American and Caribbean ports: difference in difference (DID) method," Journal of Shipping and Trade, Springer, vol. 6(1), pages 1-23, December.
    3. Kelle, Peter & Song, Jinglu & Jin, Mingzhou & Schneider, Helmut & Claypool, Christopher, 2019. "Evaluation of operational and environmental sustainability tradeoffs in multimodal freight transportation planning," International Journal of Production Economics, Elsevier, vol. 209(C), pages 411-420.
    4. David Guerrero, 2020. "A global analysis of hinterlands from a European perspective. In: Global Logistics Network Modelling and Policy: Quantification and Analysis for International Freight," Post-Print hal-02551947, HAL.
    5. Jin, Lianjie & Chen, Jing & Sheu, Jiuh-Biing & Zhou, Huixin & Jian, Yanchun & Yu, Bin, 2022. "Impacts of national strategies on gateway ports: An empirical study in the Bohai Rim," Transport Policy, Elsevier, vol. 117(C), pages 1-11.
    6. Theocharis, Dimitrios & Pettit, Stephen & Rodrigues, Vasco Sanchez & Haider, Jane, 2018. "Arctic shipping: A systematic literature review of comparative studies," Journal of Transport Geography, Elsevier, vol. 69(C), pages 112-128.
    7. Junseung Kim & Kyungku Kim & Kum Fai Yuen & Keun-Sik Park, 2020. "Cost and Scenario Analysis of Intermodal Transportation Routes from Korea to the USA: After the Panama Canal Expansion," Sustainability, MDPI, vol. 12(16), pages 1-20, August.
    8. Zheng, Jianfeng & Zhang, Wenlong & Qi, Jingwen & Wang, Shuaian, 2019. "Canal effects on a liner hub location problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 230-247.
    9. Medina, Jorge & Kim, Jong-Ho & Lee, EunSu, 2020. "A preliminary analysis of U.S. import volumes and regional effects associated with the Panama Canal expansion," Research in Transportation Economics, Elsevier, vol. 84(C).

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