Panama Canal Almost Kills Air Freight Industry in the Region

Panama Canal growth flooded the air industry and shifted cargo from air to sea

Air cargo industry in Panama is facing some serious falls in demand of cargo and the Panama Canal stands responsible for this fall in demand. The air cargo industry said that the Panama Canal has pushed the cargo on sea routes from air cargo in the region. It is not the end of this story yet, experts said that this trend is expected to continue as the transportation route is expanded.

What Operators said?

At the air and sea cargo conference in Miami, the cargo director of Copa Air has said that the number of ships passes through the canal route had increased over last few years and left a knock on effect on them (the air cargo industry). 

What else he said?

He further said that the panama route has more and more activity on the sea cargo side, sine in the air freight sector, there is more and more decrease and freight being shipped by sea.

There are more ships coming to panama ports and more frequently collecting the cargo while cargo flights are decreasing with every passing day. 

What is the future?

According to the experts, it is worse and will be even worse by next year, when the number of containers will be increased after the expansion project will be completed. The canal then will be able to allow larger vessels to pass through it. 

One of the experts said that the activity on the Panama Canal is increasing and will continue to grow as it is expected and trends are showing.

DHL expects something else

The chief executive of DHL global forwarding, said that the shippers had been stop using the west coast ports of USA after the industrial action of preceding year which will be very beneficial for the air industry and the truckers. Both parties can get benefits by this action.

He further explained the situation by referring to the trade barriers which had increased in recent years in Latin America and other areas of the continent. He said that, these factors are affecting the air cargo industry very badly and shifting the cargo on sea routes.