On this episode of Midday Market Update, Kaylee Nix and Michael Vincent look at top headlines and figure out if the Panama Canal is at risk for blockage.
The Panama Canal Authority’s administrator discusses why he’s not worried about a container ship blocking the canal.
1997: “Comparing our project to the Panama Canal is to confuse an apple with an orange,” New York lawyer Don M. Bosco said. “Our competition won’t be the canal. Instead, we intend to take significant business from the 3,000-mile U.S. landbridge system.”
Container flows into U.S. ports have grown faster over the past three months than they have at any other time in the past decade.
Panama Canal congestion is not impeding transits of container ships but it is pumping up spot rates for LNG and LPG carriers.
Positive COVID recovery signal: LNG shipping is behaving normally again, with a typical seasonal spike.
Cargo mix and larger locks kept Panama Canal volumes rising despite headwinds.
Federal government asked to contribute $3 billion to cover projected losses.
Project will increase available ship capacity within two years.
Analysis concludes West Coast ports have lost 19.4% of market share since 2006.
