Evaluating Container Ship Routes: A Case For Choosing Between The Panama Canal And The U.S. Land Bridge

Abstract

For container traffic from the Far East to Europe, shipping routes and transportation choices are about to be taken to a new competitive level. Ship sizes have increased through time, yet the Panama Canal has remained unchanged, struggling to keep pace with larger size traffic. Over that same time span, more logistical pressure has been placed on the U.S. as a land bridge for container traffic from Asia to Europe. However, the canal is set to open new locks to accommodate today’s biggest container ships, creating more choices for container traffic to many eastern Atlantic ports. In our work, we investigate choices for container ship transportation from the eastern Pacific to the western Atlantic based solely on time. Choices include traveling through the Panama Canal or using the U.S. as a land bridge (via truck and rail car). A breakeven methodology, given vessel size, is employed to discriminate between paths. Implications for decision-making are then presented and discussed. Interested parties of our work might include those investigating multi-modal integration opportunities, those seeking transportation efficiencies in water, truck and rail, and students as a case assignment in Transportation and Logistics courses.