Panama Canal Tariff Impact Looms for LNG
The Panama Canal’s role in U.S.-China LNG trade faces potential disruption from proposed U.S. tariffs on Chinese imports. ACP Chief Ricaurte Vasquez highlighted this risk at the Houston International Maritime Conference, explaining that a 60% tariff could shift LNG trade flows, forcing shipments onto longer, costlier routes. This follows a 65% drop in canal LNG traffic last year as drought conditions diverted vessels from the canal.
These new tariffs could hinder Texas exporters’ access to the Gulf-to-Asia energy market, limiting the canal’s unique efficiencies that Texas ports rely on for Asia-bound cargo.
To tackle these challenges, the ACP launched a $9 billion investment strategy aimed at doubling canal capacity and addressing drought resilience with water conservation projects like the Rio Indio Reservoir.
The project will connect to Gatun Lake, ensuring sustainable water access for the canal. New slot reservations for LNG vessels also reflect ACP’s focus on managing fluctuating demand and preventing future traffic bottlenecks.
TLC is preparing clients for potential impacts, including adapting logistics plans to keep shipments efficient. Connect with us to learn how TLC is managing these shifts for your freight needs.
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