Page 11 - NorthAmOil Week 34

NorthAmOil COMMENTARY NorthAmOil

Panama Canal marks Neopanamax

transit milestone

The SK Resolute LNG carrier recently completed the 10,000th journey by a Neopanamax

vessel through the Panama Canal since its expansion on its way from the US to China

GLOBAL THE Panama Canal marked a significant mile- container ships with a 46% share and liquefied
stone last week with the transit of the SK Resolute petroleum gas (LPG) with 25%. The expanded
WHAT: LNG carrier. The transit, completed on August locks handle 27% of transits and half of total ton-
The 10,000th transit by 11, was the 10,000th by a Neopanamax vessel to nage via the Panama Canal today, thanks in part
a Neopanamax vessel be made through the canal since its expansion. to LNG shipments.
through the expanded The SK Resolute is en route to the Chinese port For the SK Resolute, last week marked its 13th
Panama Canal was of Zhoushan from the US Gulf Coast. transit through the waterway. The vessel travels
completed last week. The journey illustrates the Panama Canal’s regularly between the US East Coast and South
contribution to the LNG since its enlarged locks Korea and Japan, as well as from Chile to the east
WHY: entered service in 2016, cutting the time required coast of North America.
The route through the for tankers to travel between the US and Asia. An Last week also marked the 106th anniversary
Panama Canal is a LNG carrier travelling at an average speed of 10 of the Panama Canal.
shorter one between US knots from Louisiana to Tokyo via the Panama “The two historic milestones this week – our
Gulf Coast LNG terminals Canal is estimated to take 38 days and 9 hours to 10,000th Neopanamax transit and 106th anni-
and Asian markets. transit the 9,209 nautical miles (17,055 km). By versary – are symbolic,” stated Panama Canal
contrast, travelling at the same speed via the Suez administrator Ricaurte Vasquez. “Together,
WHAT NEXT: Canal would take roughly 60 days and 12 hours, they reiterate that the Panama Canal is not
The canal is seeing a with a distance of 14,521 nautical miles (26,893 only a trusted and reliable service, but also one
rebound in ship transits, km). Other routes, via the Cape of Good Hope committed to continued competitiveness and
though there have been or the Straits of Magellan, would take longer still. growth.”
warnings that LNG vessel It is thus not surprising that LNG tanker traf-
traffic could be slower to fic through the Panama Canal has boomed since Taking a hit
recover than other vessel 2016 – the same year that exports of the super- Despite the role the Panama Canal plays, traffic
categories. chilled fuel from the US Gulf Coast began with on the waterway had already taken a hit prior
the start-up of the Sabine Pass liquefaction ter- to the coronavirus (COVID-19) pandemic as
minal. According to the Panama Canal Author- a result of the trade war between the US and
ity, LNG shipping now represents 12% of transits China. In 2019, China’s imports from the US
through the expanded canal, surpassed only by dropped by 20.9% year on year to $122.7bn.

Week 34 27•August•2020 www. NEWSBASE .com P11