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1 – 10 of 40The situation has seen water levels drop significantly at Lakes Alhajuela and Gatun which supply water for more than half the population and the Panama Canal. Impacts on the Canal…
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DOI: 10.1108/OXAN-DB279835
ISSN: 2633-304X
Keywords
Geographic
Topical
This paper focusses on the aftermath of disruptions and the importance of the two largest canals (Suez and Panama), commenting on how during the pandemic the canal fees were…
Abstract
Purpose
This paper focusses on the aftermath of disruptions and the importance of the two largest canals (Suez and Panama), commenting on how during the pandemic the canal fees were lowered. Considering the ongoing efforts to decarbonize shipping, some of the ongoing disruptions will help reach these objectives faster.
Design/methodology/approach
Following a literature review of route choice in shipping, and a presentation of significant disruptions in recent years, the author deploys a simplified fuel consumption model and conduct case study analyses to compare different routes environmentally and economically.
Findings
The results explain why at times of low fuel prices as in 2020, canals provided discounts to entice ship operators to keep transiting these, instead of opting for longer routes. Considering the ongoing repercussions of the pandemic in supply chains, as well as the potential introduction of market-based measures in shipping, the value of transiting canals will be much higher in the coming years.
Research limitations/implications
The main limitation in this work is that the author used the publicly available information on canal tolls, for the different ship types examined.
Practical implications
The envisioned model is simple, and it can be readily used for any ship and route (port to port) combination available, if ship data are available to researchers.
Social implications
It is possible that canal tolls will increase, to account for the additional environmental benefits brought to ship operators.
Originality/value
The methodology is simple and transferable, and the author proposes several interesting research questions for follow-up work.
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PANAMA: Drought to pose enduring challenges for canal
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DOI: 10.1108/OXAN-ES279326
ISSN: 2633-304X
Keywords
Geographic
Topical
Growth rates are strongest in the Americas, China, India and the Middle East. However, disruptions in the Red Sea and Panama Canal, and now the closure of the port of Baltimore…
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DOI: 10.1108/OXAN-DB286315
ISSN: 2633-304X
Keywords
Geographic
Topical
Panama has demonstrated resilience and maintained economic momentum, despite challenges such as reduced traffic through the drought-stricken Panama Canal and the closure, after…
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DOI: 10.1108/OXAN-DB286475
ISSN: 2633-304X
Keywords
Geographic
Topical
The situation has sent policymakers scrambling to identify fixes, as shippers explore alternative routes and the country faces the loss of hundreds of millions of US dollars in…
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DOI: 10.1108/OXAN-DB284982
ISSN: 2633-304X
Keywords
Geographic
Topical
PANAMA: Shippers may seek more Canal alternatives
Details
DOI: 10.1108/OXAN-ES284657
ISSN: 2633-304X
Keywords
Geographic
Topical
PANAMA: Canal faces practical and reputational risks
The Panama Canal remains functional and profitable, but low water levels have caused restrictions and delays
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DOI: 10.1108/OXAN-GA286929
ISSN: 2633-304X
Keywords
Geographic
Topical
Kahuina Miller and Andrea Clayton
This study provides empirical evidence on the impact of the Panama Canal expansion (PCE) on the economies of Latin American and Caribbean (LAC) countries, particularly in light of…
Abstract
Purpose
This study provides empirical evidence on the impact of the Panama Canal expansion (PCE) on the economies of Latin American and Caribbean (LAC) countries, particularly in light of the emergence of larger container ships such as neo-Panamax and post-Panamax vessels.
Design/methodology/approach
This study uses the Bayesian structural time Series (BSTS) model to evaluate the economic effects of the PCE on 21 countries within the LAC region. It utilized the World Bank's gross domestic product (GDP) figures between 2000 and 2019 as the primary variable, alongside the human development index (HDI) (X1), container throughput (TEU) (X2) and unemployment rates (UNEMPL) (X3) covariates. This allowed a precise and robust approach to analyzing time series data while accounting for uncertainties and allowing the inclusion of various components and external factors.
Findings
The findings revealed that the PCE has a positive and statistically significant impact on most countries within the Caribbean Transshipment Triangle, ranging from 9.2% in Belize to 46% in Cuba. This suggests that the causal effect of the PCE on regional economies was not confined to any specific type of economy or geographical location within the LAC region. Where the growth rates were statistically insignificant, primarily in some Latin American countries, it coincided with countries that are primarily driven by exports and service industries, where bulk and oil tanker vessels are likely to be the main carriers for exports rather than container vessels.
Originality/value
The practical implications of this research are crucial for various stakeholders in the maritime industry and economic planning. The factors influencing economic growth resulting from investing in maritime activities are vital for decision-makers to create policies that lead to positive outcomes and sustainable development in regions and countries with flourishing maritime industries. The methodology and findings have significant implications for governments, managers, professionals, policy-makers and investors.
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