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.

When the  Covid-19 pandemic started, one common image was of empty store shelves at the supermarket. A common industry refrain related how Americans were seeing the role of truck transportation in their lives. According to the Census Bureau’s Commodity Flow Survey, nearly $900 billion worth of food moved via truck transportation in 2017 (the latest data available). Within that category, 129 million tons of food products were moved using temperature controlled trucks.