…As Panama Canal Sets Record Cargo Volume for FY 2018***
Prospects for the once ailing multipurpose shipping fleet have improved amid a surging growth in renewable energy generation and a construction boom in South East Asia.
In its report, shipping consultancy Drewry said that it remains “cautiously optimistic on the outlook for the sector,” as there are some caveats to this optimism. Global general cargo demand is forecast to grow at a rate of just 2% per year to 2022, while the multipurpose and heavylift fleet is expected to contract at less than 1% per year over the same period.
“Meanwhile, the threat of a trade war continues to loom over the horizon and the competing sectors are not yet secure enough to move from this sector.”
Multipurpose vessels benefit from the growth in demand for both breakbulk and project cargo and, while it is clear that both are effected by modal competition and trade tariffs, the latter has seen some renewal in certain sectors.
BP’s energy outlook shows that, although renewable energy consumption is still a minor part of the global mix, it is growing at a faster rate of almost 17% year-on-year, compared to any of the other fuel types. Wind energy provided more than half of that renewables growth, which is positive news for the multipurpose sector.
The other significant factor in the uplift for demand is a region-wide constriction boom for South East Asia that is expected to last the next ten years. It is largely fueled by China’s One Belt One Road (OBOR) initiative, which will link China to Europe through Central and South-East Asia.
The outlook for the competing sectors, although mixed going into the final quarter of the year, remains positive for the medium term, according to Drewry.
“There may be trouble ahead but the green shoots of recovery appear weather-proofed to withstand the volatility expected to the end of 2018.”
In the meantime, the Panama Canal closed its 2018 fiscal year with a record tonnage of 442.1 million Panama Canal tons (PC/UMS), representing a 9.5 percent increase from the previous year.
With this number, the Panama Canal surpasses the cargo projections of 429.4 million PC/UMS tons for FY 2018, as well as the 403.8 million PC/UMS tons registered in FY 2017.
“The Panama Canal continues to exceed our expectations, reinforcing every day the importance of the waterway’s expansion and its impact on global maritime trade,” Jorge L. Quijano, Panama Canal Administrator, said.
The increase was driven by the transit of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) carriers, containerships, chemical tankers and vehicle carriers.
The container segment continued to serve as the leading market segment for tonnage through the canal, accounting for 159 million PC/UMS tons of the total cargo, of which 112.6 million PC/UMS tons transited the expanded canal. Tankers, including LPG and LNG carriers, followed close with a total of 130.3 million PC/UMS tons.
The third ranked segments included bulk carriers with 73.7 million PC/UMS tons, while vehicle carriers took fourth place with 49.5 million PC/UMS tons seen during the year.
In terms of cargo tonnage, the main routes using the Panama Canal in FY 2018 were between Asia and the U.S. East Coast, the West Coast of South America and the U.S. East Coast, the West Coast of South America and Europe, the West Coast of Central America and the U.S. East Coast and intercoastal South America.
Panama Canal said that the main users during the period were the U.S., China, Mexico, Chile and Japan, while some 62.8 percent of the total cargo transiting the canal had its origin or destination in the United States.
World Maritime News