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panama canal connects trade routes american journal of transportation

Will the panama canal drought hinder U.S. ports?

Shifts in the global supply chain are taking place simultaneously as the Panama Canal's operations strain due to drought. What does this mean for shippers in the drayage market? Grains might be down, but East Coast and Gulf Ports of the United States are in a  favorable position to minimize the impact thanks to some seemingly unrelated shifts in the global supply chain. So, what does grain, electric vehicles, and China's national security have to do with it? Read on to find out. 

So, what's the big deal with the Panama Canal?

Did you know that a staggering 40% of all containers originating from the United States travel through the iconic Panama Canal? This engineering marvel connects the Atlantic and Pacific Oceans. This is a critical point for U.S. imports and exports, so shippers need to pay attention as the drought will likely affect operations through the end of 2023.

U.s. transit & panama canal facts to know

  • The U.S. accounts for just over 73% of traffic for the Panama Canal.
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