Approximately 4,240 miles from Norfolk, the Panama Canal has spent the past few years undergoing a $5 billion expansion. The expanded canal, which opened officially on June 26, now allows bigger ships to pass through the 102-year-old waterway, doubling cargo capacity. Despite the distance, the canal expansion is having direct impacts on coastal ports across the United States, especially in Virginia.
Around the world, and in the U.S., businesses immediately recognized the new growth opportunities from the expanded canal. Many logistics experts predict the expansion will shift international trade routes, allowing ships to reach Asia from the U.S. more than two weeks faster than going east through the Suez Canal.
In anticipation, companies along the East Coast have transformed their infrastructure and increased foreign operations. According to the Bank of America Merrill Lynch 2016 CFO Outlook, 61 percent of companies report they will have some foreign market involvement this year, with 48 percent buying from foreign markets, 41 percent selling to foreign markets and 21 percent having operations outside the United States.
