The objectives of this research are 1) to measure negative and positive estimates of Panama Canal expansion using secondary imports and exports data available from WISERTrade (www.wisertrade.org) and 2) to understand the possible gains that New York and New Jersey states obtain. To increase container shipment capacity, the Panama Canal Authority in 2006 decided to invest more than $5 billion to expand the Canal. The expanded Canal will accommodate larger vessels that cannot now traverse the facility. Along with capacity expansion, the project is expected to have significant impacts on U.S. water and ground carriers, including transportation systems relating to cargo distribution, port development, U.S. supply chains, and logistics. The expansion will induce an even greater flow of container trade between Asian countries and the U.S., and hence, trade volumes arriving at Gulf and Atlantic Coast ports are also expected to increase as shipping cargo shifts from the congestion experienced in West Coast ports.