The Invisible Hand and the New Panama Locks

The Panama Canal has served as the global transshipment shortcut for over one 100 years. By connecting the Pacific Ocean with the Atlantic, it allows ships to pass through without traversing around the southern tip of South America. By saving significant time and energy, this is why it is the preferred route for roughly 14,000 ships annually, and the prime accomodator for 10% of all U.S. shipping, because companies are able to obtain cost savings which eventually get passed on to the consumer. After some minor delays due to labor union strikes and cost overruns, the monolithic Third Set of Locks Project will push America’s international trade strategy in the right direction. The expansion is 85% complete, with the final cost totaling over $7 billion, and a projected date of completion between this coming December, or the early months of 2016 if there are no other setbacks. A new third lane will double the canal's capacity to assist the passage of Post-Panamax...(Read Full Article)