Just one boat and one waterway, still, the Suez Canal blockage from a wedged in container ship affected the global supply chain.
As cargo ships become larger, the supply chain benefits of their economies of scale are offset by the externalities they create at ports and beyond.
Today’s weekly roundup includes the everyday economics of invisibles like the cost of tariffs, the market, certain jobs, measures and the impact of a canal.
When larger vessels use a wider, deeper Panama Canal, they will create economies of scale and shift the invisible lines that show worldwide supply chains.
The Panama Canal’s renovation was supposed to be done at the end of next year. However, the locks contracting group now is saying that the work is $1.6 billion more expensive than they expected–around 50% more– and they want extra…