May 13, 2016 | Industry Insights

Shipping Industry and Preparing for the New Panama Canal

Share This:
Featured Image

The newly widened Panama Canal is set to re-open later this year, and just as it did 102 years ago the Canal will again be transformative for the shipping industry. How prepared are our seaports to accommodate the new generation of larger cargo ships that will be making their way through the Panama Canal? The larger canal is set to accommodate a new line of Post-Panamax vessels — supertankers, container and passenger ships, which will be able to hold upwards of 18,000 20-foot-equivalent units (TEUs).

According to an op-ed piece in The Baltimore Sun, written by Ray LaHood, a former secretary of transportation and the current co-chair of the bipartisan advocacy group Building America’s Future, the U.S. is lagging in its preparation for the Post-Panamax vessels. Harbors must have a depth of at least 50 feet for the vessels to enter, and right now while American West Coast ports can largely handle the bigger ships, only three East Coast ports — Baltimore, Norfolk and Miami — are deep enough to accommodate them. In addition, landside infrastructure must also be capable of moving millions of tons of goods, quickly and efficiently, to and from the port. As we discussed in a previous article, many of our seaports across the country are spending billions to accommodate these new ships, including the Port Authority of New York and New Jersey. This is not only deepening their harbors, but also increasing their bridge heights and transforming their infrastructure to accommodate larger vessels that bring with them more cargo and potentially more business. In fact, raising the height of the Bayonne Bridge from 151 feet to 215 feet to accommodate the larger ships has been underway at a cost of $1.3 billion.

La Hood is not the only one voicing concern over our preparedness to handle this new age of shipping. Officials from the U.S. Maritime Administration, the Federal Maritime Commission and the U.S. Merchant Marine Academy have been calling on Congress to prioritize maritime and freight investments, saying that underinvestment in ports is a major concern as container ships grow larger, which means more cargo must be unloaded into increasingly tight spaces. Also, ports face unique operational challenges as they move ever-expanding volumes of cargo between ships, trucks and rail lines. “Freight congestion in and around our nation’s ports continues to grow and will be exacerbated by ever-larger mega containerships and growing multi-partner shipping alliances,” said Paul “Chip” Jaenichen, the administrator of the U.S. Maritime Administration.

In early March, we saw some headway with the U.S. Department of Transportation announcing that $2 billion in unspent earmarks can be freed up for states to use for new investments in infrastructure. Also, last year, Congress past the FAST Act, which initiates multiple freight programs including a new $4.5 billion competitive grant program, prioritizing “nationally significant freight and highway projects” in urban and rural areas across the country. The program not only awards grants to a wide variety of applicants, such as metropolitan planning organizations, port authorities, and other multi-state entities, but also covers an expansive number of eligible projects beyond highways, including those connected to major intermodal and port-related facilities. The FAST Act also launches a new $6.3 billion freight formula program, aiming to target investments on a newly designated “National Highway Freight Network” in addition to other critical urban and rural freight corridors.

Roanoke Trade specializes in providing the shipping and global services industry with insurance solutions. As the industry expands and transforms, we are positioned to respond to the challenges our clients face. For more information about our products and services, please contact us at 1-800-ROANOKE (800-762-6653).

Share This:

Related


Is your Business Exposed to the Risks of Employee Distracted Driving?

The National Safety Council(NSC) recognizes April as Distracted Driving Awareness Month. They estimate that 4,000 deaths and 276,000 injuries occur yearly because of distracted driving crashes. Additionally, distracted driving is the cause of 10% of all fatal crashes. Many of these accidents and fatalities are attributed to drivers engaging in risky behavior such as cell phone use, eating/drinking, reaching for an object, talking to a passenger or reading GPS. Not wearing seatbelts, speeding and use of alcohol makes these accidents much worse. Additionally, the stressors of the pandemic, returning to work, and other social factors have increased the cognitive distraction […]

Commercial Business Insurance, Industry Insights

Roanoke Insurance Group Celebrates 90 Years of Excellence and Innovation in Logistics and Trade Insurance

February 10, 2025 – Chicago, IL Roanoke Insurance Group proudly celebrates its 90th anniversary as a pioneer and trusted partner in the logistics and trade insurance industry. Since its founding in 1935 in Chicago, Illinois, Roanoke has been at the forefront of industry innovation, delivering specialized insurance solutions that have shaped and supported the global trade and logistics sector. Milestones in Roanoke’s Legacy From its early days as the first provider of customs import bonds in the United States to its recognition as the first official ATA Carnet provider for the U.S. Council for International Business (USCIB) in 1978, Roanoke […]

Industry Insights

Roanoke Appoints a New Regional Vice President and Head of Sales

Roanoke has appointed two key leaders to new roles, effective November 1, 2023. Please join us in congratulating Patrice Lafayette for accepting the position of Regional Vice President, Western Region, and Grant Goldsmith, who has accepted a position as Head of Sales. Patrice has been a steadfast leader of Roanoke’s Western Region for more than 17 years. She started her career as a Bond Account Manager and has held several roles during her tenure, including Bond Manager and Director of Sales for the Long Beach Sales team, and most recently, has been responsible for managing relationships with many of our […]

Industry Insights

Roanoke is the leading provider of insurance and surety solutions for transportation and logistics providers. In fact, we are recognized as the most reliable source for U.S. customs bonds.

Contact

If you have any questions or need help, feel free to contact with our team.

800-762-6653

US CORPORATE HEADQUARTERS

1501 E. Woodfield Road

Suite 400W

Schaumburg, IL 60173


CANADA CORPORATE HEADQUARTERS

390 Bay Street

Munich Re Centre, 22nd Floor

Toronto, ON M5H 2Y2

Solutions that Go the Distance.

© 2024 Roanoke Insurance Group Inc.

Better Business Bureau logoCoverholder at Lloyd's logo