The Classy Investors

  /  Economy   /  Panama Canal Shipping Rebounds in Hopeful Sign for Global Trade

Panama Canal Shipping Rebounds in Hopeful Sign for Global Trade

imageStock Markets17 hours ago (Aug 17, 2020 04:36AM ET)

(C) Bloomberg. The Maersk container ship Bali, left, and the CMB Coralie bulk carrier, right, are guided through the Miraflores locks at the Panama Canal, near Panama City, Panama. Photographer: Susana Gonzalez/Bloomberg

(Bloomberg) — The Panama Canal is seeing signs of a rebound in global trade as ship transits recover from the depressed levels caused by the pandemic.

Total transits through the waterway rose to 933 in July, from 845 in June, which was the fewest since the canal opened an expanded set of locks four years ago to accommodate bigger ships.

Initial August numbers show further improvement, Canal Authority Deputy Administrator Ilya Espino de Marotta said in a phone interview.

Container shipping between the U.S. and Asia, the canal’s most important route, began to increase this month, she said. 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.

More than 3% of the world’s maritime commerce transits the waterway, according to Fitch.

$2 Billion Investment

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.

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.

(C)2020 Bloomberg L.P.

Panama Canal Shipping Rebounds in Hopeful Sign for Global Trade

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.