Gloomy shipping market followed by the Brexit concluded last week with a great uncertainty. With this uncertainty, on Sunday 26th June, COSCO shipping Panama, which sailed out from Greece was the first ship to transit the new canal.
The New Canal – would definitely ease up some traffic through this tiny nation which has invested more than $5 billion on these new locks. Would the new canal make any impact on the global energy trade flow?
Reports from the main US energy watchdog says that the new locks will likely have less impact on the seaborne oil trade flow. There could be an uplift when it comes to gas flow.
While COSCO shipping Panama, a containership, is the first one to transit the new canal – following COSCO shipping Panama are three VLGCs heading to Asia.
The Energy Information Administration (EIA) says the wider locks, which are opening this Sunday, “are not likely to drastically affect crude oil and petroleum product flows.”
The EIA notes that the canal still remains closed to larger crude tankers, which are the most cost-effective method of transporting crude oil. Thus, to sum up, though the new canal would would be a boon to dry bulk or containers, this may not necessarily have any impact on the global crude movement and trade.
‘COSCO Shipping Panama’ – a Final Nail in the Coffin!
The Panamax ships have been the dominant workhorses in the Panama trade route and with the Neo-panamax vessel transiting through the new locks could be the final nail in the coffin for the conventional panamax ships which have been workhorses dominating the trade around the Panama canal.
According to Alphaliner data, six vessels ranging from 6,000 to 10,000 teu are due to arrive at the waterway between 30 June and 8 July, and this is likely to replace at least 9 strings of conventional panamax containerships.
Thus, with ever increasing size of the containerships and the new canal could accommodate bigger ships, there is a definite threat to the conventional panamax ships and they could become the feeders soon!
Did you subscribe for our daily newsletter?
It’s Free! Click here to Subscribe!
Source: U.S. Energy Information Administration
