Panama's new canal and Chicago: A plus for the Midwest, but also a triumph of human yearning

- December 28th, 2016
Source: Chicago Tribune

After a nine-year construction project, the canal can handle ships toting up to 14,000 containers, a vast improvement from the previous capacity of 5,000. That matters to Midwesterners: "The canal promises to cut shipping costs between the U.S. — especially the Midwest, and Eastern and Gulf coasts — to Asia and South America," Northwestern University civil engineering and transportation professor Joseph Schofer tells us. "These lower logistics costs will make U.S. agricultural products more competitive, and will help hold down costs of manufactured goods in the Chicago area.”

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Year End Remarks From The Panama Canal

- December 31st, 2016
Source: The World Post

By most accounts, 2016 was a year unlike any in recent memory. The year bore witness to tectonic shifts in the global landscape, creating uncertainties across all markets. We also saw market and trade growth decline, driven in part by declining commodity prices. In particular, the energy sector saw the most drastic change this year, which can be largely attributed to global oversupply.

In 2017, customers can expect the Canal’s commitment to safe, reliable and efficient service to continue—with new developments on the horizon. Looking forward, we have plans to invest in the future of the Canal and our customers by advancing projects such as the Corozal Container Terminal. This and other projects will add to an already robust set of offerings for the maritime industry, thereby expanding regional trade opportunities and strengthening Panama’s position as the logistics hub of the Americas.

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Expanded Panama Canal Marks 600 Transits

- January 4th, 2017
Source: The Maritime Executive

Since the inauguration of the Expanded Panama Canal in June, more than 600 ships have transited the waterway, and the Panama Canal Authority (ACP) says that bookings for future traffic is strong. Container ships have made up more than half the volume, including Hapag-Lloyd’s new 10,500 TEU Valparaiso Express, the largest vessel to pass through to date. She is the first in a class of five built specifically to take advantage of the dimensions of the new locks: the Expanded Canal can accommodate ships of up to 160 feet wide, 1,200 feet long and 50 feet of draft, which will allow the passage of boxships of up to 14,000 TEU – roughly three times the capacity of a Panamax vessel.

LNG and LPG carriers, car carriers and bulkers make up the next most common vessel classes to transit the new canal. According to the ACP’s announcements, the pace of traffic has accelerated since the waterway's inauguration: the first 100 vessels transited over the six weeks ending August 15, and the latest 100 vessels passed through during the three weeks ending January 4.

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Panama Canal expansion could give Tri-State boost

- January 4th, 2017
Source: The Herald Dispatch

An expanded Panama Canal could lead to more barge traffic along the Ohio River and expanded business at The Point, a 500-acre industrial park in South Point, according to several local officials.

"There is real potential here," said Bill Dingus, executive director of the Greater Lawrence County Area Chamber of Commerce and the Lawrence Economic Development Corporation, which is overseeing development at the industrial park.

Megan Barnes, the vice president of marketing and business development at South Point-area based Superior Marine Ways who also serves as manager of the port at the industrial park, was among those on hand for the signing of a memorandum of agreement in Panama City, Panama, last month.

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Hong Kong, Liberia, Panama and Marshall Islands flag - a comparative analysis

- January 4th, 2017
Source: Seatrade Maritime News

In this article, we provide an overview of the rules and regulations governing Hong Kong, Liberia, Marshall Islands and Panama flag.

Currently in Asia, we often see owners, operators and lessors choosing Hong Kong, Liberia, Marshall Islands or Panama as the flag state for their vessels. The reasoning behind choice of flag is the topic of an article in itself and will not be addressed here. Suffice to note that all four flags are widely accepted by financiers (noting also the flag will determine the governing law of the mortgage over a vessel) and we have rarely seen a financier refuse to finance on account of a counterparty’s choice of one of these four flag states.

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Weekly Chart: Latin America's 2017 Economic Outlook

- January 4th, 2017
Source: Americas Society / Council of the Americas

The world’s top two worst economic performers in 2016 were Venezuela and Brazil. That, coupled with a drop in oil prices and political crises, meant a 1.1 percent contraction for Latin America’s GDP last year. That’s the worst the region has seen since the 1.7 percent drop in 2009. But with commodity prices expected to improve, the Economic Commission for Latin America and the Caribbean (ECLAC) projects Latin America will bounce back in 2017, expanding GDP by 1.3 percent. Some things won’t change though: the Dominican Republic and Panama will likely continue to be the region’s best performers, and Venezuela its worst.

AS/COA Online charts ECLAC’s latest estimates and growth projections for the region.

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