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Investors all over the world are making big bets on U.S. infrastructure projects that are a result of the expansion of the Panama Canal. The canal started moving larger container ships through its wider and deeper locks and channel on June 26. This expansion took many years to complete and had a cost of $5.25 billion. Not surprisingly, that $5.25 billion is only a fraction of the money being spent in the U.S. to make the East and Gulf Coast ports able to accommodate the giant ships that are now passing through the Panama Canal. The opening of the newly expanded canal is speculated to have a ripple effect on the economy. This ripple effect will not only impact U.S. ports and shipping, but the railroad and trucking industries as well. Others, too, will also be impacted such as those companies manufacturing or sourcing from Asia. Supply chain managers will now have to balance the relative value of time and cost which is not easy. It will be slower but perhaps as much as 30% less expensive in some cases to directly ship goods from East Asia to the East Coast which is a tradeoff supply chain employees will have to consider.  Read more.

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