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The Panama Canal Expansion and Its Impact on East–West Liner Shipping Route Selection

Author

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  • Thi Yen Pham

    () (Graduate School of Logistics, Incheon National University, 119, Academy-Ro, YeonSu-Gu, Incheon 22012, Korea)

  • Ki Young Kim

    () (Graduate School of Logistics, Incheon National University, 119, Academy-Ro, YeonSu-Gu, Incheon 22012, Korea)

  • Gi-Tae YEO

    () (Graduate School of Logistics, Incheon National University, 119, Academy-Ro, YeonSu-Gu, Incheon 22012, Korea)

Abstract

Through an empirical study of ocean-borne trade between Hong Kong and New York, we combined qualitative and quantitative analysis to examine route selection decisions in a post-expansion era of the Panama Canal. A two-stage methodological framework was developed to assess the competitiveness of the three route alternatives, namely the Panama and Suez canals and the US intermodal system. In the first stage, a combination of literature review and expert knowledge was employed to identify the determinants of route selection. In the second stage, fuzzy theory and the multi-criteria decision-making technique were used to evaluate the criteria and the route alternatives. The results indicate that transportation cost is the most important factor in choosing a route, followed by transportation time, reliability, and route characteristics. The “all water route” via the Panama Canal is preferred over the Suez and U.S. intermodal options.

Suggested Citation

  • 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, Open Access Journal, vol. 10(12), pages 1-16, November.
  • Handle: RePEc:gam:jsusta:v:10:y:2018:i:12:p:4353-:d:184797
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    References listed on IDEAS

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    More about this item

    Keywords

    route selection; Panama Canal; crucial factor; Fuzzy TOPSIS; maritime transport;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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