 |
Re: Article: Logistically Impaired Reporters Burble?
Author: BOB2
Date: 07-11-2012 - 07:31
The sky is falling....the sky is falling....the end in nye!
Not!
LA-Long Beach "not" knickers in a twist-because this is not much of a threat to these ports, except to those who can't do much math.... like reporters searching for an angle to spin.
It is likly that some of the worlds increasing container traffic will go via the widened canal, including increasing container trade from place like Chile and Columbia. Then there's the potential of CNG shipping from Bolivia through Peru and Chile to the Gulf coast.
A few commodoties may find this route more attractive for direct shipment to the Eastern markets, but I doubt it will impact LA LB very much, if any. The Panama routing is a lot farther and doesn't competitively serve major West Coast US and Norther Mexican markets comprisng over 100 million consumers. As to the Europe comment, I think the other canal is still actually much shorter and less costly for traffic coming directly from Asia to Europe.
Much of the double tracking for increased container traffic is coming because US railroads are going more aggressively after domestic container traffic. Today RR's handle about 2/3'd of foreign/import container traffic, but only about 30% of domestic traffic. The RR's are aggressively going after increasing that much larger domestic share of traffic.
So I'm not fretting about the sky falling...........
Not!
LA-Long Beach "not" knickers in a twist-because this is not much of a threat to these ports, except to those who can't do much math.... like reporters searching for an angle to spin.
It is likly that some of the worlds increasing container traffic will go via the widened canal, including increasing container trade from place like Chile and Columbia. Then there's the potential of CNG shipping from Bolivia through Peru and Chile to the Gulf coast.
A few commodoties may find this route more attractive for direct shipment to the Eastern markets, but I doubt it will impact LA LB very much, if any. The Panama routing is a lot farther and doesn't competitively serve major West Coast US and Norther Mexican markets comprisng over 100 million consumers. As to the Europe comment, I think the other canal is still actually much shorter and less costly for traffic coming directly from Asia to Europe.
Much of the double tracking for increased container traffic is coming because US railroads are going more aggressively after domestic container traffic. Today RR's handle about 2/3'd of foreign/import container traffic, but only about 30% of domestic traffic. The RR's are aggressively going after increasing that much larger domestic share of traffic.
So I'm not fretting about the sky falling...........
