A competitive analysis of Panama Canal routes

After more than a decade of continuous growth of the container segment at the Panama Canal, the situation has changed mainly due to the effects of the Great Recession in U.S. Canal research indicated that the drop in the number of liner services through the waterway was mainly due to segment consolidation and subsequent service rationalization as well as the reduction in cargo volumes geared to the USA. All these changes made it extremely important to analyse the relative competitiveness of the Panama Canal route in comparison with all competing routes. A Panama Canal Route Competitive Analysis Model was developed to assess the competitiveness of maritime routes that use the Panama Canal against alternative routes based on total transportation expenses. Maritime transportation costs are derived from alternative route itineraries applied against different vessel types and vessel size. Inland transportation costs are obtained from market rates for three different modes of transportation: rail, truck and bar...