There's no doubt it will, but the question is to what extent. "The supply chains have become less efficient. There's less freight flowing through this artery of global trade, and we are seeing rates here and there that have increased by more than 11%, exceeding $3,000 on key trade routes from Shanghai to Houston," stated Peter Sand, chief analyst at Xeneta.
The Panama Canal is very important for importers on the US East Coast (USEC) and the US Coast on the Gulf of Mexico, especially those that order goods from the Far East, he added. Importers have other alternatives, such as the Suez Canal, but they are not the preferred option, especially at this time of year when American consumers make their Christmas purchases. In addition, it is an important route for perishable exporters on the west coast of South America who send their products to the east coast of the US and Europe.
According to Sand, except for container ships that have ensured their passage through reservations, the vessels that want to transit the Canal have had to pay between 600 and 800,000 dollars more per transit. This cost must ultimately be passed on to consumers, he added.
"There are shipping lines that have already announced additional surcharges over the normal freight rates for cargo transiting the Panama Canal. These surcharges range from $300-$500 to about $3,000, which represents a significant increase in prices," Sand stated.
“This situation could create more inefficiencies in supply chains, which benefits the shipping companies [because they raise rates] but hurts the forwarders, importers, and consumers because, in the end, the goods will simply become more expensive.”
Source: mundomaritimo.cl