The Panama Canal and Overseas Shipments

When you are shipping your household good to Panama or another country overseas with IntlMOVE Panama, they may travel through the Panama Canal. Before the Panama Canal was constructed, it was an extremely long journey for vessels to get around South America. Instead of passing through Panama, ships had to take route via the Strait of Magellan or Cape Horn. When the canal was completed in 1914, international trade became much easier. In fact, nearly 1 million vessels have traveled through the canal. By passing through the canal, rather than the southernmost tip of South America, ships could shorten their journeys by 8,000 miles of more.

 

The canal is 48 miles long and connects and the Atlantic Ocean and the Pacific Ocean. After failed attempts by other countries and thousands of deaths, the United States completed the canal and maintained control of the canal until 1977. After a period of joint ownership between Panama and the United States, the Panamanian government took complete control of the canal in 1999. The Panama Canal Authority assumed administration.

 

The journey through the canal takes between eight and ten hours. The largest vessel that can travel through the Panama Canal is called a Panamax. These ships have a dead weight tonnage (DWT) between 65,000 and 80,000 tons. However the actual cargo cannot exceed 52,000 tons.

 

The fees to pass through the canal vary depending on the type of ship, size of ship and the type of cargo being transported. Fees for container ships are assessed according to the ship’s capacity. Each ships capacity is configured by the amount of twenty-foot equivalent units (TEUs) the ship can carry. Ships carrying cargo are charged more than ships that are not carrying cargo.

 

To accommodate increasingly larger ships, the Panama Canal Authority has invested about $1 billion upgrade the canal. In addition to widening the canal, the money was also used to modernize the operations and efficiency. The goal was to increase capacity by 20 percent.  New equipment was purchased, tug boat fleets were added and parts of the canal were widened and straightened. This should reduce restrictions placed on large ships and make the canal easier to pass through. The lock lighting system was enhanced, an updated scheduling system was updated and navigational channels and entrances were deepened. Overall, a lot of improvements were made to improve the Panama Canal’s capabilities.

 

There are future plans to continue making improvements as container ships get bigger and the international shipping needs increase. There are many ships that are already too big to pass through the Panama Canal, so to stay relevant, the Panama Canal will need to grow with the shipping industry’s needs.

 

Moving to from the USA to Panama will allow you the opportunity to visit the canal. Take a ferry up and down the canal to see the magnificent engineering feat. There are also restaurants and other sightseeing tours available at the Panama Canal. Whether or not your shipment travels through the Panama Canal, IntlMOVE Panama will ensure the safest, time efficient and cost effective measures are taken when shipping your household goods to Panama.