Monday, December 13, 2010

Trade, Shipping - Panama Canal - a closure due to rains.

Trade existed as a integral part, Centuries ago and the journey of goods between the supplier to buyer was through a chain known as trade route.  Ages ago existed, Silk route, spice route and other routes.

Those were not the days of Bill of lading and various conventions that are in vogue now.  Shipping terminology is a vast area and understand that there are ‘dry’ and ‘wet’ shipping.  Contrary to common misconception, ‘dry shipping’ means cargo claims against sea carriers and disputes under charter parties.  ‘wet shipping’  refers to the type of claims that usually attend maritime disasters such as collisions and oil spills. It would also include Salvage, General average, tortuous liability for collisions and statutory liability of ship owners for pollution.

This is not about age old law or the modern day practice but more about flooding which cost billions  to a small Nation.  This 77km canal that joins Atlantic Ocean and Pacific Ocean is the key conduit for international maritime trade.  A ship sailing from New York to San Francisco via the canal travels 8370 km (5200 miles), well under half the 20900 km (13000 miles) route around Cape Horn.

Panama is a country in the southernmost tip of South America, bordered by Costa Rica, Colombia, Carribean sea and Pacific Ocean.  This was a Spanish settlement.   A canal built by the US Army Corps of Engineers between 1904 – 1914 is raking millions of dollars. The canal owes its origin to the French around 1880 but the modern day canal is an effort of US.   The management of the zone passed on to Panama in 1999.  It is reported that around 14,000 ships pass through the Panama Canal each year, representing about 5% of world trade.

It is an engineering marvel that the waterway was cut through one of the narrowest saddles of isthmus that joins North and South America.  
The canal consists of artificial lakes, several improved and artificial
channels, and three sets of locks.   The ships pass through the buoyed entrance channel in the Gulf of Panama in Pacific side, travels through Miraflores locks, lake, Pedro Miguel lock, Gaillard Cut slices, Chagres River, Gatun Lake, Limon bay – to the other side.   The size of the locks determines the maximum size of ships allowed passage. Because of the importance of the canal to international trade, many ships are built to the maximum size allowed. These are known as Panamax vessels.   The Canal uses a system of locks -compartments with entrance and exit gates. The locks function as water lifts: they raise ships from sea level (the Pacific or the Atlantic) to the level of Gatun Lake (26 meters above sea level); ships then sail the channel through the Continental Divide.

Ships take an average of 8 to 10 hours to transit the Panama Canal.  The Panamas Govt.  earns revenue based on a a mathematical formula for the measurement of total ship volume.  A net Panama Canal ton is equivalent to 100 cubic feet of volumetric capacity.  The appropriate rate is applied depending on whether the ship is laden or in ballast (empty).    Most of the vessels are charged on the basis of their actual displacement tonnage.  One displacement ton is equivalent to one long ton or 35 cubic feet of salt water.   Long ton is equal to 2,240 pounds (1,016 kg). USA tops the users list followed by China, Chile, Japan and South Korea.  India is 55th in the list. 

This month there has been heavy flooding resulting in closure of the Panama canal for the first time in 21 years.  It is reported that this closure arising out of weather if first of its kind since it opened in 1914.  Previously the operations in the canal were closed in Dec 1989 when US troops invaded to topple President Manuel Noreiga. 

There are official reports that from 9th Dec 2010, transits and normal operations have resumed at the Panama Canal  which is good news for the Traders and Shipping industry.

Regards – S. Sampathkumar.

26 comments:

  1. I read recently that the Canal is to be expanded upon, nearing soon. Due to overflowing traffic.

    -Panamerican Shipping

    ReplyDelete
  2. This is really interesting, You're a very skilled blogger. I have joined your rss feed and look forward to seeking more of your magnificent post. Also, I've shared your site in
    my social networks!

    Here is my blog post ... shipping car through military

    ReplyDelete
  3. Great blog right here! Additionally your web site a lot up fast!
    What web host are you the use of? Can I am getting your affiliate hyperlink in your host?

    I desire my web site loaded up as fast as yours lol

    Visit my web site week's best grocery deals

    ReplyDelete
  4. This comment has been removed by a blog administrator.

    ReplyDelete
  5. An experienced cargo shipping company can provide additional information to you about this custom regulation.

    ReplyDelete
  6. An essential hotspot for the gathering of people that makes the peruser stride by step.
    curso de importação

    ReplyDelete
  7. We are a heap sending affiliation which gives adequately intriguing reactions for ocean payload and bearer cargo associations. So in the event that you are searching for the best master community for shipping from China to Amazon FBA , we are splendid to help. We give insightful transportation answers for our customers. Our quality associations at sensible costs have made us one of the standard payload ace affiliations. Our social event of authorities have huge bunches of understanding and guarantees that each stack is sat back and in the best condition. We accept pride in considering ourselves to be your confided in colleagues and pass on quality associations in transporting all your material.

    ReplyDelete
  8. Awesome and interesting article. Great things you've always shared with us. Thanks. Just continue composing this kind of post. Sailing panama

    ReplyDelete
  9. Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. https://haon.hu/gazdasag-jasz-nagykun-szolnok/megbizhato-biztonsagos-komplex-szallitmanyozas-3172501/

    ReplyDelete
  10. Wow, What a Excellent post. I really found this to much informatics. It is what i was searching for.I would like to suggest you that please keep sharing such type of info.Thanks tarjeta de ofertas

    ReplyDelete
  11. Assume paid for with the help of center, have discovered modern society; believed that protect on your playlists, you could potentially know most of the hassle; assumed ones step quit, much more is unable to drive; Imagine I would like adore, merely the caress. Europa-Road Kft.

    ReplyDelete
  12. Positive site, where did u come up with the information on this posting? I'm pleased I discovered it though, ill be checking back soon to find out what additional posts you include. https://idealspy.com/

    ReplyDelete
  13. Oh dear. Essay time again, would it be? And you've the common cramps and palpitations? You will discover 3 places where writer's block starts. There's a chance you're at one of them now. trucking

    ReplyDelete
  14. I have bookmarked your blog, the articles are way better than other similar blogs.. thanks for a great blog! hazmat shipping

    ReplyDelete
  15. I admire this article for the well-researched content and excellent wording. I got so involved in this material that I couldn’t stop reading. I am impressed with your work and skill. Thank you so much. Europa-Road

    ReplyDelete
  16. Apart from the fact that the software should be easily installed and connected in your network, it should also be kept in consideration exactly how long it would take for the company to train the staff with the new system courier software system. FedEx delivery hours

    ReplyDelete
  17. Excellent article. Very interesting to read. I really love to read such a nice article. Thanks! keep rocking. Jasa Import kirim barang dari China ke Indonesia

    ReplyDelete
  18. Awesome blog. I enjoyed reading your articles. This is truly a great read for me. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work! mafi trailer

    ReplyDelete
  19. Thank you for sharing a bunch of this quality contents, I have bookmarked your blog. Please also explore advice from my site. I will be back for more quality contents. Europa-Road kombájn szállítás

    ReplyDelete
  20. Creature fueled - regardless of whether ridden by people or utilized as pack creatures for development of individuals and items, creatures can work alone or in groups - for example donkeys, horse-trucks, canine sleds and so forth. Europa-Road

    ReplyDelete
  21. At time of pickup, you will need this document printed out to hand to the driver. This document has all of the itemized details for the shipment, Europa Road fuvarozás including any freight classes, NMFC item numbers, item details and dimensions, addresses, and all the rest of it.

    ReplyDelete
  22. I was surfing net and fortunately came across this site and found very interesting stuff here. Its really fun to read. I enjoyed a lot. Thanks for sharing this wonderful information. buy ambien 10mg online

    ReplyDelete
  23. Thanks for the nice blog. It was very useful for me. I'm happy I found this blog. Thank you for sharing with us,I too always learn something new from your post. nemzetközi szállítmányozás Europa-Road Kft.

    ReplyDelete
  24. Thanks for a very interesting blog. What else may I get that kind of info written in such a perfect approach? I’ve a undertaking that I am simply now operating on, and I have been at the look out for such info. konténeres szállítmányozás Europa-Road Kft

    ReplyDelete
  25. Yes i am totally agreed with this article and i just want say that this article is very nice and very informative article.I will make sure to be reading your blog more. You made a good point but I can't help but wonder, what about the other side? !!!!!!Thanks Pak Cargo

    ReplyDelete
  26. Tracing a cell phone number breaks down into a real-time analysis of the number structure, followed by the live querying of a database to get a fix on the location. Most cell phone numbers start with 3 or 4 digits that identify the area code or cellular operator. track-trace

    ReplyDelete