Panama Canal Bets Big on LPG and Agriculture Transits Amid Global Trade Shifts

The Panama Canal is focusing on increased LPG and agricultural transits to counteract a projected decline in global trade in 2024. Revenue rose 14% to $5.7 billion as LPG and cargo ships saw increased movement. Future infrastructure projects aim to bolster canal utility and water supply.

The Panama Canal administration is anticipating a rise in LPG vessel and agricultural commodity transits to offset the predicted downturn in global trade next year, according to revelations made to Reuters. This strategy follows a 14% revenue boost, reaching $5.7 billion in the last fiscal year.

In Houston, Panama Canal Authority's chief, Ricaurte Vasquez, highlighted LPG's increasing value and noted significant impacts due to U.S. trade policies. The canal saw a surge in traffic, aided by the timing of shipments ahead of potential tariff hikes.

A fresh initiative seeks stakeholder interest for a new LPG pipeline, expected by 2030, and emphasizes changing grain shipment patterns, notably Chinese soybean imports. Meanwhile, long-term projects, including a reservoir and new ports, are set to enhance the canal's future capabilities.

(With inputs from agencies.)