Contraction of world trade to affect Panama Canal
20 de octubre de 2020, 0:15
Panama, Oct 20 (Prensa Latina) The Panama Canal will be affected during the 2020-2021 fiscal year, due to the contraction of world trade and some changes in the global productive chains, whose effects are perceived today in the international economies.
Canal Administrator Ricaurte Vazquez noted in an article that, considering the expectations of the World Trade Organization (WTO), his institution predicts a 10-percent reduction in traffic compared to 2019, and a 9-percent decrease in tonnage in contrast to 2020.
These are the effects of a planetary recession that was on its way, was accelerated abruptly by the Covid-19 pandemic, was aggravated by the trade war between the United States and China and the drop in oil prices, which discourage the use liquefied natural gas and, as a consequence, the crossing of tankers through the canal.
As a trend, experts noted the concentration of cargo by ship in the segment of container carriers, in addition to changes in the manufacture centers from China to Southeast Asia, the transfer of cargo goes to Chinese ports that can handle big ships.
That situation forces the canal to keep a deep-draft offer for Post Panamax ships, which can only cross the transoceanic waterway through the new locks, where the big challenge is to have enough fresh water for operations.
Today's situation shows an adjustment in the productive chains, Vazquez told Prensa Latina in a recent virtual press conference. He pointed out that it is not good for companies to plan their work in a supposedly static world, so they need to adjust to the new changes in international trade.
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