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imports from the US dropped by 20.9% year on reported a loss of cruise ship traffic that normally
year to $122.7bn. peaks in the spring.
LNG was among the segments hit, with no
US exports of the fuel to China at all between What next
March 2019 and February 2020. However, Transits through the Panama Canal are now on
following a preliminary trade deal agreed the up, however, as global trade rebounds from
between the two countries in January 2020, the worst of the global lockdowns. In June, total
China started granting tariff waivers to some transits through the waterway had fallen to 845 –
of its LNG importers for cargoes from the US the lowest level since the expanded canal opened
as the country worked to meet its target for – but in July, transits rose to 933 in July.
importing more US energy. The Panama Canal Authority is trying to
These efforts to boost US-China trade encourage this rebound, announcing recently
were hampered by the Asian country’s that it was increasing the maximum authorised
lockdown in response to COVID-19, draft for the transit of the Neopanamax locks
though, and China remains significantly by 1 foot (0.3 metres) to 48 feet (14.6 metres).
behind its target for ramping up US energy It noted, however, that the draft was dependent
purchases. But despite doubts over the on water levels in Gatun Lake, and that vessels
trade deal’s ability to survive an upcoming may be required to offload some of their cargo
review, the SK Resolute’s current journey or take other measures to decrease their draft to
shows that US LNG trade with China con- transit the locks.
tinues for now. Speaking to Bloomberg this week, Panama
More recently, as other countries brought in Canal Authority deputy administrator Ilya
their own lockdowns in an effort to contain the Espino de Marotta warned that LNG and cruise
spread of COVID-19, traffic through the Pan- ship transits may be slower to rebound than
ama Canal took a further hit. In May, a total of other types of traffic, such as container ships.
937 ships transited the canal, while a further 260 Indeed, it has been a slow summer for US LNG,
transits were cancelled according to Vasquez – a with a number of contracted cargoes cancelled.
21% decline on expected numbers. Nearly half But these are now recovering, which is likely to
of the cancellations came from LNG and LPG translate into higher LNG tanker traffic through
tankers, and the Panama Canal Authority also the Panama Canal in the coming weeks.™

Week 34 27•August•2020 www. NEWSBASE .com P5