- Panama Canal Shipping rebounds in hopeful sign for global trade.
- Total transits through the waterway was 845 in June and rose to 933 in July, while August numbers till date show further improvement.
- Containers might recover strongly while cruise liners may not.
- Container shipping between the U.S. and Asia, began to increase this month.
- Cruise ships continue to cancel their slots.
- Feasibility studies for projects worth $2 billion to tap new water sources.
The Panama Canal rebounds in global trade as ship transits recover from the disruptions caused by the pandemic, reports Bloomberg Quint.
Recent transits
June & July
Total transits through the waterway was 845 in June and rose to 933 in July, which was the fewest since the canal opened an expanded set of locks four years ago to accommodate bigger ships.
August
Canal Authority Deputy Administrator Ilya Espino de Marotta said August numbers till date show further improvement.
Container shipping Vs Cruise ships
She said, container shipping between the U.S. and Asia, the canal’s most important route, began to increase this month.
But cruise ships continue to cancel their slots, and the trade in Liquid Natural Gas may also take more time to recover, she added.
“If you go by segment we think containers might recover strongly, cruise liners not at all,” Espino de Marotta said.
According to Fitch, more than 3% of the world’s maritime commerce transits the waterway.
$2 Billion Investment plan
Canal feeder Gatun Lake
The canal’s locks are fed mainly by water from Gatun Lake, which also provides drinking water for Panama City. A series of droughts in recent years has caused the lake’s water levels to dip, forcing the canal to implement water-saving measures and restrict the depth of ships crossing the canal.
Feasibility studies
The canal authority has researched alternative water sources including nearby rivers and reservoirs they could potentially tap. The authority will open bidding in the next two months for feasibility studies for projects to tap new water sources, Espino de Marotta said. These will require an investment of as much as $2 billion, she added.
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Source: Bloomberg Quint
