Watchkeeper: Looking forward to the “neo-Panamaxes”

Next year will see a notable centenary accompanied by a very significant event for the Panama Canal, when its new locks open for business and provide the benefits of the short cut across the isthmus to a huge new portion of the world fleet. To shipping people, “redefining” what is meant by a “Panamax” will mean almost a change of mind-set, with the need to learn the new maximum dimensions of 366 metre length overall, 49 metre breadth and a 15.2 metre draft (although water depth may cause this latter maximum to vary). The amazing fact is that the builders of the original canal were so far-sighted in constructing lock dimensions that were so much more capacious than were needed by the average merchant ship of the day. The first “Panamaxes” were battleships, although the term itself is not more than forty years old!
The dimensions were, of course decreed by the strategic requirements of the US Navy, which wished to be able to move its biggest units between East and West Coasts, but merchant shipping has gained greatly from this requirement for a whole century. And while there have been “incremental” improvements made over the years, the dimensions of the original lock system, described as one of the wonders of 20th century engineering have remained largely unaltered.
Those who were present at the BIMCO Annual General Meeting in Paris and at the BIMCO 39 event would have heard the Administrator of the Panama Canal Authority, Mr. Jorge Quijano, suggesting that the improvements to the famous waterway will produce some dramatic changes to future maritime logistics. While the justification for the expansion is clearly the great changes that have taken place in world shipping and trade, it is equally clear that the new dimensions will themselves encourage a rethink in how shipping considers its trade routes. This might be considered to be as “strategic” as the planning of the original waterway, offering all sorts of exciting possibilities, with some 91% of the world fleet of containerships able, by 2016, to term themselves, according to Mr Quijano, as “neo-Panamaxes”.
The original canal, just as the opening of the Suez Canal 75 years before it, produced a complete redrafting of the world trade routes and had a huge impact on both trade and maritime technology. Although initially, owners did suffer from the reduction in their ton mile figures from these short cuts, this was more than compensated by the expansion in world trade made possible by more efficient and productive shipping.
The expanded canal may seem to be rather less dramatic than these earlier examples, but the opportunities presented to shipping could well be of the same order. The opportunities from economies of scale, so important when fuel costs are considered, along with environmental benefits, will be just part of the picture. The administrator suggested that the expanded canal, besides being of huge benefit to Atlantic-Pacific and East-West trades, would also serve as a useful accelerator to the growth of the South American countries and see the emergence of all sorts of new users, along with the opportunities for the ports at each end of the waterway.
The truth is, of course, we really do not know how this extraordinary piece of 21st century civil engineering will impact upon shipping and trade. But history informs us that it is likely to be very positive indeed.
Source: BIMCO