Before Erie Canal, transporting goods from the Great Lakes region to New York City and other eastern markets was a time-consuming and expensive process that involved either long and arduous journeys over land or lengthy and hazardous trips around the treacherous St. Lawrence River and Atlantic Ocean.
1. Eliminated the need for land transportation:
Erie Canal provided a direct water route between the Great Lakes and the Hudson River, bypassing the need for overland transportation. This eliminated the high cost associated with wagon and horse transportation, reducing the overall cost of goods.
2. Reduced shipping time:
The canal allowed for faster and more efficient transportation of goods compared to overland routes. This reduction in shipping time meant that goods could reach markets sooner, reducing the need for long-term storage and lowering holding costs for merchants and producers.
3. Increased competition among shippers:
The opening of the canal increased the number of shippers operating on the water route, leading to increased competition. This competition drove down shipping rates and further reduced the cost of transporting goods.
4. Access to broader markets:
Erie Canal provided access to a much broader market for farmers and producers in the Great Lakes region. They could now easily transport their products to larger and more lucrative eastern markets, increasing demand and competition. This increased market reach positively impacted prices, leading to lower costs for consumers.
5. Increased productivity and economic growth:
The reduced cost of transportation stimulated economic growth in the regions served by the Erie Canal. It encouraged increased production, as farmers and manufacturers could now move their goods to markets more cheaply and efficiently. This boost in productivity led to a surplus of goods, which contributed to lower prices.
