38 American Journal of Transportation American Journal of Transportation ajot.com W W W . P O R T T B . C O M FLORIDA’S DISTRIBUTUION HUB EXPANDING CAPACITY FOR • Strategically located at the crossroads of the growing Tampa/Orlando Corridor • More than 550 million square feet of distribution center space along I-4 and I-75 • E-commerce, consumer goods, perishables and building materials • The fastest growing region in the fastest growing state • Recently expanded terminal capacity and plenty of room for growth • Capable of multiple round-trip truck deliveries per day from Port to distribution centers • Weekly direct sailings from Asia and Latin America including Mexico but another solution to the problem of truck conges- tion is to utilize the national rail system. This lessens the number of trucks coming and going, in addition to being far more environmentally friendly. Invest- ing in rail only has benefits for the cargo industry. Another set of suggestions from the Airforward- er’s Association is regarding employment. As this industry is not necessarily one that provides traditional 9-5 hours, trained professionals need the compensa- tion that will make it worth it. Providing a sustainable living wage and exciting benefits will make attract- ing and retaining employees much easier. Once the employees are hired, they need training. The Airfor- warder’s Association suggests an industry-wide train- ing program, which would not only keep everyone on the same page, but would make sure employees understand how their role keeps everything running smoothly. In particular, TSA and CBP must know how to consistently interpret and enforce rules. If they do not, cargo will be stopped up. This is particu- larly dangerous for time sensitive cargo. On the topic of attracting new blood to the indus- try, Brendan said, “Working for a German company, I’ve seen how Europe’s structured apprenticeships and sponsored university programs create intentional career paths in logistics. Europeans set out on careers in our industry. In the US, most people “stumble” into the industry rather than choosing it. I know when I first started I had no idea how cargo was handled, what freight forwarders and brokers were (and one of my uncles owned a brokerage company at JFK).To bridge this gap, we must expand collegiate logistics programs and better communicate our value proposi- tion to the next generation: that our work is essential to global trade and societal well-being.” In the end, all of these suggestions are dependent on funding. Only by banding together, and bringing attention to these critical infrastructure issues, will these problems be solved. (CONGESTION – continued from page 28) Kong-based CK Hutchinson’s Panama Canal ter- minal operations in Balboa and Cristóbal, alleging Hutchinson’s ties to China threatened US security — specifically strategic access to the Panama Canal. There was a certain irony in the claims, as Hong Kong billionaire Li Ka-shing, founder of the CK Hutchinson, has never been considered to be a sup- porter of the Chinese Communist Party (CCP) nor has the group’s terminal operations demonstrated any bias in two decades of operation. Nonetheless, Trump Administration pressure triggered CK Hutchinson to look to sell not only the two Panama Canal terminals, but their entire port terminal group. In March 2025, a BlackRock-led consortium agreed to acquire the shares of the CK Hutchinson’s Hutchinson Ports Holding and Hutchinson Port Group Holdings for $22.8 billion. The deal would include a 90% stake in Balboa and Cristobal termi- nals, as part of the 43-port portfolio spread over 23 countries. Importantly, the BlackRock consortium also included Mediterranean Shipping Company (MSC) and Terminal Investment Limited (TIL), MSC’s terminal arm. The Chinese and Hong Kong governments pro- tested the proposed Hutchinson port portfolio acqui- sition. Ironically stating that the deal threatened China’s security. China, in turn offered up their own acquisition plan, which was rejected by Panama and the Trump Administration. The duel of plans ended abruptly on January 30, 2026, when Panama’s Supreme Court invalidated CK Hutchinson’s concessions. The Supreme Court ruled that the law that established the concession in the first place was unconstitutional, thus both the original concession in 1997 and the extension in 2021, were invalid. The move prompted CK Hutchinson to launch a $2 billion international arbitration claim against Panama. And China, backing Hong Kong-based CK Hutchinson, said Panama acted in “bad faith” and suggested they had caved in to US “bullying”. In response, China began a bullying campaign of its own in which Chinese State firms were directed to halt new project discussions with Panama. And China ratcheted up the pressure with intensified inspections and detentions of Panamanian flag vessels. This tactic was for Panama, the world’s second-largest ship registry and a major revenue generator for the country, a particularly effective form of retaliation — although thus far there hasn’t been any major deletions from the registry. While China’s pressure on Panama may have backfired as other Latin American countries have taken an unfa- vorable view of Beijing’s strategy. In the meantime, Panama awarded temporary contracts to run Pacific-facing Balboa and Gulf-fac- ing Christobal to Maersk (and its APM terminal subsidiary) and with a curious twist, to MSC (and its terminal arm TIL) which were previously party to the BlackRock deal. However, without too much fanfare the two canal terminals have been effectively functioning as before the imbroglios. However, in a March meeting, China’s National Development and Reform Commission (NDRC) ordered Maersk and MSC to cease operations in Balboa and Christobal. Untangling the web: The Panama Canal’s Future Panama should be able to determine the termi- nal operator of their choice, as the nation’s Supreme Court instructed. But the tug-of-war between the US and China has ensnared Panama in the middle. And the success of the Panama Canal has raised the stakes for all parties. Can Panama extricate itself? Is there a path to the future that doesn’t wind through Beijing or Washington? And the two “interim” terminal oper- ators might be the first steps forward. (TANGLED – continued from page 36)
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