panama canal expansion to boost chinaamericas trade
Last Updated : GMT 12:34:34
Arab Today, arab today
Arab Today, arab today

Panama Canal expansion to boost China-Americas trade

Arab Today, arab today

Arab Today, arab today Panama Canal expansion to boost China-Americas trade

Panama Canal
Panama City - XINHUA

Panama Canal's expansion project, which is expected to be completed in 2016, will boost the Chinese shipping industry and trade between China and the Americas, experts said in recent interviews with Xinhua.

The 80 km Panama Canal, which was completed and opened in 1914, has been serving as a "world bridge," connecting the Pacific and Atlantic cutting down the overall distance by as much as 10,000 km between the two oceans. The canal currently accounts for 5 percent of global trade volume, which mostly involves trade between Asia and the Americas, according to the Panama Canal Authority (ACP).

International trading and the shipping industry have undergone drastic changes in the past century, and over half of the world's freighters are too big to go along the Panama Canal.

The canal's Panamax ships are determined principally by the dimensions of the canal's lock chambers which are no more than 320 meters long, no more than 33 meters wide and has a draft no more than 12 meters deep.

To meet the demand of the growing Asia-Americas trade, the Panama Canal began its 5e billion dollars expansion project in 2007 and is planned to open to commercial shipping in the spring of 2016.

Upon its completion in 2016, the canal will be able to accommodate Post-Panamax ships which are larger than Panamax ships. These ships will increase the canal's annual capacity from the current 300 million tons of cargo to 600 million tons. Around 17, 000 vessels will pass through the canal every year, up by 21 percent from the current 14,000 vessels, according to ACP.

The expansion of the canal means more and bigger ships will be able to pass through the canal, which is good news for Chinese shipping companies, said Wei Chunfeng, manager of China Ocean Shipping Company's branch in Panama (COSCO Panama).

China is the canal's second largest client, after the U.S. and the volume is still rising, according to U.S. Department of Transportation's figures.

Panamax vessels have a cargo capacity of up to 5,000 twenty- foot equivalent units (TEU) only, but after the expansion, the canal will be able to handle vessels with a cargo capacity of up to 13,000 TEU, ACP said.

"The shipping cost of each TEU will be lower," said Wei, whose company is the canal's most important Chinese client.

In addition to lowering the cost, the expansion can also alleviate the current detainment problem. At present, only around 40 vessels can pass through the canal everyday but there are about 100 ships on the waiting list. The expansion will allow more vessels to get the use of the canal.

"To shipping companies, being able to transport more cargo at a lower cost is very important. Most Chinese products available in American supermarkets are shipped through the Panama Canal. And an expanded canal will definitely benefit trade as using larger ships will make it less expensive to export Chinese products to the Americas," said Wei.

A bigger canal will not only boost China's exports to the Americas but also provide better access for China to import from the region.

Soybeans from Brazil and corn from the U.S. will be shipped to China at lower prices, as well as the energy shipments like coal, natural gas and oil.

At present, shipping Venezuelan oil to China takes 45 days via the Atlantic and the Indian oceans because the oil tankers are too big for the Panama Canal. However, after the expansion, the canal will allow most oil tankers pass through, cutting the shipping time from Venezuela to China to 30 days with a lower cost.

Experts believe the Panama Canal is important for China's energy security, as it provides another route besides the Strait of Malacca in Southeast Asia.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

panama canal expansion to boost chinaamericas trade panama canal expansion to boost chinaamericas trade

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

panama canal expansion to boost chinaamericas trade panama canal expansion to boost chinaamericas trade

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Airbnb raided by Japan

GMT 01:55 2017 Saturday ,18 November

Airbnb raided by Japan
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday