I believe that two of the most important changes our industry will face in 2016 will be the impact on ocean carrier economics caused by the Panama Canal expansion and the restructuring of global ocean carrier alliances brought about by industry rationalization through mergers and acquisitions.
On the Panama Canal expansion project, we pause to consider what the effect on ocean carrier-alliance spot market pricing might be brought about by the increased vessel tonnage destined to the U.S. West Coast, Gulf and East Coast ports. Additional capacity in terms of vessel slots requires additional cargo revenue in order to contribute to the cost of doing business with this new capacity. From all of the current economic analysis that we have at our disposal, 2016 global containerized demand will not keep pace with global containerized supply.
Additional outlets for larger vessels with additional capacity moving through an expanded Panama Canal cause concerns regarding healthy spot market pricing that can effectively contribute enhanced bottom-line results to an industry already reeling from economic disaster.
In addition to the economic uncertainty that lies ahead for the ocean carrier industry with the Panama Canal expansion and opening of the new locks during 2016, the subject of ocean carrier alliance reorganization leaves us all with the daunting task of reinventing the industry with changed or modified alliance structures as well as envisioning a future where potential merger and acquisition of ocean carriers challenges the thought process of how we do business in the future, both from a commercial and operating perspective.
It seems that the rationalization of ocean carrier alliances after the dust settles on the merger/acquisition front leaves more questions than answers at this time.