Monthly Archives: August 2015

Panama Canal Limits Ship Size Due To El Niño

Well, now I’ve heard it all.  Is this worse than West Coast strikes for shippers?

Panama Canal Limits Ship Size Due To El Niño – Supply Chain 24/7.

Actually I doubt it, because it is a fairly small change in the draft.  About 20% of the ships that will be affected. That’s actually quite a bit of cargo. And it will force realignment of supply chains that just got done routing stuff through the Panama Canal to avoid risk of West Coast congestion.

But watch out in the future. If the drought continues, we may see more of this.

On a positive note, perhaps the East Coast ports can simply wait for global warming to deepen their harbors instead of doing all that dredging!

Amazon’s new Joliet warehouse

More concentration of warehouses in the Joliet area. even though Joliet is only 35 miles form Chicago, you still have to order early for same-day delivery.  That’s due to the congestion.

Interesting that the tipping point was really the State’s charging sales tax on internet purchases, not the reverse.  That meant they could forgive withholding taxes for Amazon for a while.

Chicago Tribune LogoAmazon’s Joliet warehouse: 1,000 jobs, up to 10 years of state tax breaks – Chicago Tribune.

Panama Canal: curb their enthusiasm

Opening the new Panama Canal may not bring gains many shippers expect, says Patrick Burnson quoting several professors.  Issues include longer journeys and possibly greater emissions.

Logistics management logoPanama Canal: Shippers may have to curb their enthusiasm – Article from Logistics Management.