The tumultuous world of global maritime transportation: a cautionary tale for supply chain managers

Abstract

The past five years have seen unprecedented changes transform the way goods are moved around the world. The expanded Panama Canal now permits larger vessels as well as simultaneous transits in each direction. Coincidently, steamship lines began purchasing a new generation of bigger ships, forcing ports in the United States to make very large investments in new infrastructure. When examined within the context of other environmental events impacting global trade, the total effect has been to put the maritime industry into a state of flux. This paper will examine these and other important issues before offering conclusions intended to help managers develop successful supply chain strategies in today’s uncertain post-Panamax world.