The Panama Canal set a new record for total cargo volume – 322 million tons – in fiscal 2011, outstripping 2010’s volume by 7.1 percent and breaking the previous record, set in 2007, by 2.9 percent.

A transportation study by the United Soybean Board (USB) projects that the total volume of soybean and grain traffic through the canal will increase by 30 percent when the canal opens a third lane of locks in 2014. This new larger, shipping lane will expand the average area for barge transport from 70 to over 150 miles. And assuming the ports will dredge to ensure passage of larger ships, the expansion is expected to save about $.35 cents per bushel on transportation costs for elevators within range of the central Gulf of Mexico ports.

The canal’s increased capacity will also allow a Panama ship originating in southern Louisiana to load an additional 13,300 metric tons (524,000 bushels) of corn per trip, increasing each shipment’s value by about $3.4 million.

The USB analysis indicates the total volume of grain and soybeans transiting the Panama Canal will increase 30 percent (426 million bushels) by 2020/2021.

The U.S. Grains Council will host its annual meeting in Panama City, Panama, Feb. 13-15, 2012. Mark your calendars and don’t miss your opportunity to hear about this and more at this must-attend meeting.