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Bigger ships bring fears of longer waits with Panama Canal widening

10/8/2013 9:11:18 AM

SHIPPERS on the US east coast are fearful of cargo delays brought about by larger containerships expected with the completion of the Panama Canal expansion in 2015, reports Drewry Supply Chain Advisors.

"Big ships not only mean lower slot costs, they also come with some risks of service delays for shippers," said the report.

It takes longer to discharge a 13,000-TEUer than an 8,000 TEUer, except when the terminal can provide a proportional increase in the number of cranes to offset the higher box volume, the report said.

Much will depend on better productivity and upgrading US infrastructure - "the latter being uncertain because of US government debt", said Drewry.

The report also noted that US east coast ports handle smaller ships than west coast ports, 5,000-TEUers being the biggest through Panama, facilitating more even cargo throughputs.

But once expanded, 14,000-TEU ships would call at US east coast ports, bringing about sudden dockside surges that would also impact on inland transport volume causing congestion at choke points, said the report.

Family Dollar transport chief Eric Sherman said that southern California ports take three to four days from vessel arrival to cargo delivery to the terminal gate.

East coast ports do better, he told the recent South Carolina International Trade Conference, but that is because smaller ships bringing in lower volumes facilitate a more even cargo flow.

But if the west coast delays, caused by megaships, are to be experienced on the east coast with the arrival of neo-panamaxes, then shippers have reason to worry, he said.

 

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