The Panama Canal expects an increase in transits of liquefied petroleum gas (LPG) vessels and carriers of some agricultural commodities to help it compensate for a reduction in world trade next year,
The Panama Canal expects an increase in transits of liquefied petroleum gas (LPG) vessels and carriers of some agricultural commodities to help it compensate for a reduction in world trade next year, the waterway's chief told Reuters on Monday.
The world's second-busiest interoceanic waterway registered a 14% revenue increase to $5.7 billion in the fiscal year ended in September and saw 19% more transits, with LPG vessels and container ships moving more cargoes through the canal that connects the Pacific and Atlantic oceans.
"LPG is a product that will be even more valuable in the next 20, 25 years," Ricaurte Vasquez, the administrator of the Panama Canal Authority, said on the sidelines of the Houston International Maritime Conference.
The imposition of U.S. tariffs and trade policy changes pushed an increase in canal traffic, particularly in the third quarter of the year, with many shippers sending cargoes well ahead of the Christmas season to avoid more adverse measures.
The canal's share of U.S. LPG exports to Asia has recovered to more than 95%, from 80% in 2023-2024, when a severe drought forced passage restrictions and triggered delays, Vasquez said.
The Authority is seeking interest from companies in building a 2-million-barrel-per-day LPG
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