The Panama Canal has had a significant impact on global supply chains. The Panama Canal has a rich history that has drastically altered shipping routes. The canal has continued to grow and develop since its birth over a century ago. It continues to affect the economy of many countries, especially the US. Recent expansion efforts of the canal has continued to affect global supply chains as well. Throughout in the 1800’s, American and British leaders wanted to ship goods between the Atlantic and Pacific Oceans cheaply and easily. There were many inherent dangers and inconveniences in sailing around South America, such as piracy and long lead time. The US and Britain negotiated the Clayton-Bulwer Treaty to work together with developing a proposed canal through the Republic of Nicaragua. The French began excavating in 1880, but faced many roadblocks that costed 9 years and approximately 20,000 lives. The French went bankrupt. A new treaty was formed in 1901, the Hay-Pauncefote Treaty that gave the US license to manage and build their own canal. In 1902, the US and Colombian Foreign …show more content…
Many ports now greatly benefit from this expansion, including smaller ports like the Port of Boston. More goods and new goods being shipped through the canal means less expensive transportation costs, which means higher profit margins on goods that use the canal for shipping (Chien Wen Yu). Many ports in the US are preparing for the influx of goods by dredging out their ports for bigger Neopanamax ships, and by increasing the efficiency of their shipping container years and distribution networks. This creates many more jobs in both construction as well as distribution and production near these expanding