Despite of sale Hutchison’s terminals, in two ports Balboa and Cristobal at either end of the canal but US PRESSURE on Panama very high according to Lloyd’s List
“To further enhance our national security, my administration will be reclaiming the Panama Canal. We’re taking it back,” affirmed US president Donald Trump in his speech to Congress on March 4 — after the Hutchison deal was announced.
NBC News reported that Trump has directed the US military to increase its presence in Panama and draw up various options, including greater military cooperation with Panama at one end of the spectrum and a seizure of the canal by force at the other.
After day the Federal Maritime Commission FMC launched a new investigation into the world’s shipping chokepoints, including the Panama Canal, which could theoretically impact the future ability of Panama-flagged ships to call at US ports
Seven choke points
The FMC said it is investigating “constraints that have affected transits” through seven choke points: the English Channel, Malacca Strait, Northern Sea Passage, Singapore Strait, Panama Canal, Strait of Gibraltar and Suez Canal.
” Functionality and efficiency”
“During periods of high demand, congestion leads to delays, causing costly disruptions to global supply chains,” said the FMC on the Panama Canal, adding that this waterway is prone to droughts that impact “functionality and efficiency”.
The Panama Canal : Geopolitical importance
The Panama Canal also holds substantial geopolitical importance, crucial to the interests of the United States. Political instability or disruptions in its operations could have far-reaching consequences,” it said, specifically drawing a connection to Trump’s rhetoric.
The FMC said it has the statutory power “to address conditions unfavourable to shipping in US foreign trade” caused by “laws, regulations or practices of foreign governments” and remedies include “refusing entry to US ports by vessels registered in countries responsible for creating unfavourable conditions”.
It further noted that the Panama Shipping Register “is one of the world’s largest ship registries, with over 8,000 vessels reportedly registered”
.If the US barred Panama-flag ships
If the US barred Panama-flag ships from its ports, it would spur a mass reflagging to other registries such as the Marshall Islands and Liberia, and deprive Panama’s government of a large source of revenue. It would also disrupt trade to the US if there was not enough lead time.
The mere suggestion of such a possibility could be viewed as a geopolitical pressure tactic.
According to transit stats* released Thursday by the Panama Canal Authority (ACP), there were 975 transits in February, down 4% from January. However, last month had three fewer days than the prior month, so transits per day increased 7% month on month in February, to 34.8.
There were 237 transits via the larger ACP-built neopanamax locks, down 17% month on month due to 9% fewer containership transits during the Chinese New Year holiday period and 31% fewer transits by very large gas carriers.
There were 8.5 neopanamax locks transits per day, down 9% month on month.
Source : Lloyd’s List
