Panama Canal expansion poses $1bn challenge for ship operators and insurers

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As the Panama Canal celebrates 100 years since it opened, insurers are warning that the expansion will lead to significantly increased insurance premiums.

In a new report, Allianz Global Corporate & Specialty states that the value of insured goods transiting the expanded canal zone after the 2015 opening may increase by over $1bn per day as more cargo goes through. More traffic and bigger ships could jeopardise the canal’s safety record and cause blockages in the event of an accident, it states.

And if this isn’t problem enough, there is now growing doubt that the new canal will be big enough.