What do you think about this picture? On the left hand side, it is the smallest container vessel in the world. On the right hand side, it is the largest container vessel in the world, which can carry maximum of 18,000 TEU's. TEU stands for "twenty-foot equivalent unit" which is standardized mean of shipping cargoes. The primary of this study is to examine the impact on Panama Canal Expansion under trade flow between United State and it's trade partners for US export and import. The research show that Panama Canal Expansion on the trade flow has significant impact. First of all, Panama Canal Expansion would affect not only US domestic trade flows, but other international trade flows, since domestic transportation and international transportation are interactive.
Second, delay cost and tolerate at the Panama Canal would have no impact on the trade volume and flows in the United State. Third, West Coast port would have negative impact and East Coast port would have positive impact from the Panama Canal Expansion. Why? Gulf Coast port has no impact from the Panama Canal Expansion. Lastly, optimal toll rate is inconclusive in this study because not only changes in toll rates account for only small portion of total transportation cost, but also Panama Canal Expansion. Panama Canal compete with shipment through West Coast for shipment to from Asia.
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