US-China trade war could hit Panama Canal revenues

1,011Views 0Comments Posted 13/09/2018

A trade  war between the United States and China, the two biggest users of the  Panama Canal  could affect the movement of cargo and revenues  through the waterway says Canal Authority  administrator Jorge Luis Quijano. 

The United States is the first user of the Panama Canal with 68.3% of the freight traffic, followed by China, with 18.3%; Chile, with 11.4%; Japan, 11.4% and Mexico, in fifth place with 10.4%.

"The decisions of these great powers can have an impact on us, he told  representatives of the American Chamber of Trade and Industries of Panama (Panamcham) on  Thursday. September 13

But we also serve other routes and countries such as Mexico, Chile or other Asian countries " said Quijano.

In view of this panorama, the Canal administration seeks other markets such as Brazil to move grains north of that country and to Asia, in addition to liquefied natural gas that  goes to other Asian countries like Japan.

Despite the concerns over  the  US and China, the Canal's projection for 2019 is for strong growth and Quijano emphasized that there is still nothing concrete in the differences between the two powers.