Tuesday, May 6, 2014

California Economy Threatened by Texas from Panama Canal Expansion

CA is worried about this which is why they started "Beat the Canal".  The amount of the hit is up in the air still.  This will become more and more evident as time passes, I suppose.

The article talks about the magnitude of the hit which ranges from 1% - 25%.

The Port of Los Angeles alone generates 919,000 regional jobs and $39.1 billion in wages and tax revenues each year. Los Angeles ports handle about 40% of all the container traffic in the United States. There are a total of 3 million employees in industries related to port operations. Studies project Los Angeles ports will lose between 1% and 25% compared to existing levels of trade.
Well, 1% is rather unimpressive.   So what one can glean (or guess) from this is probably a couple of things:
1) Some portion of CA shipping will be lost.  Take it form the middle and say 10%.
2) Growth will probably take the biggest hit.

But from articles I've ported before, it's still faster to unload as soon as possible and transfer to rail/truck.  So, I'm guessing time sensitive merchandise such as clothing will be shipped through CA.  Large items such as lawnmowers and TV sets, etc will be transported through the new widened Panama Canal.



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