Since its completion in June 2016, the Panama Canal expansion has slowly had a positive ripple effect on how FF&E products are shipped and received.
Here are just a few ways widening the Panama Canal has changed the game for hospitality:
- Easier international market access
- Reduced freight costs
- Less travel time
Most notably, East Coast hoteliers pick up speed and save on cost when they go through the canal.
Having FF&E products delivered through the canal can reduce overall travel time, a significant change for Southeastern properties. Hoteliers no longer need to truck product deliveries across the country, making delivery times far more predictable.
East Coast ports are experiencing more traffic in general. In 2017 alone, the canal saw a 23 percent increase in cargo tonnage. With the expanded port sizes, it’s easier to get containers off the ship and through customs.
Widening the canal opened up a brand new freight venue for international products, narrowing the gap between domestic and international case goods. The canal now accepts super container ships bringing large orders in to the East Coast ports.
For hoteliers, the potential option to ship directly to destinations such as Miami, Savannah or Jacksonville creates new savings opportunities, particularly for freight costs.
A Step in the Right Direction
Widening the Panama Canal was undoubtedly a game changer for the hospitality industry; however, big changes take time. Hoteliers are just beginning to reap the benefits of the 2016 expansion, and we expect to see many more waves of change in the coming years.
If you’d like to learn how to improve your procurement process, please contact us online or call 678-967-2032 to speak with one of our FF&E experts.