Panama Canal Expansion
The Panama Canal Expansion opened a third set of larger locks on June 26, 2016, allowing Neopanamax ships carrying far more containers to pass between the Atlantic and Pacific oceans.
What happened and why it matters
The expanded Panama Canal let much larger container ships sail from Asia to US East and Gulf Coast ports, giving importers a stronger all-water alternative to West Coast ports and cross-country rail. The new Agua Clara and Cocoli locks opened on June 26, 2016, when COSCO Shipping Panama made the first transit carrying 9,472 TEU. The locks were designed for ships of about 12,600 TEU, more than double the old Panamax size, and canal staff later raised that limit. East Coast ports deepened channels to receive the ships. Shippers now compare Panama routings with West Coast ports on cost, transit time, and risk.