Why the Panama Canal is a large, long -term prize in Trump’s World Trade War

The Panama Canal has spent the last few years fighting extreme weather, with the phenomenon El Nino and Heavy drought which leads to a crisis at water level. Now President Trump’s trade war is threatening the global trade gateway. Critical Passage for US Ocean Cargo Containers Traffic, the Panama Channel is facing a potential business as a result of the Trump China rates and a rapid decline in Ordered goods For us freight forwarders.

Forty percent of all the traffic of containers in the United States travel through the Panama Canal every year and overall – $ 270 billion a year. The US and China are the best users of the Panama Channel and its role in global shipping has increased in recent years due to the interruption of global supply chains. The revenue of the Panama Canal authority reached $ 3.38 billion last year, despite the terms of land, and the revenue increased every year since 2017.

The uncertainty of the trade war and the 145% Trump tariff for Chinese goods – which will start hitting goods arriving from China to US ports on May 27, based on the four to six weeks, required by the ocean load to reach the United States from Asia, has already led to a large -scale pause for the US imports. According to data from the intelligence company of the supply chain Project44, there was a 300% increase in empty sailing (canceled cargo ships) from China to the United States, as on April 2 on April 2 on April 2.

The ports on the west coast in the US are has already been struck And the impact on the ports of the east coast is expected to increase, with the withdrawal of the vessels being the result of a decrease in production orders for Chinese factories: less produced products becomes a fewer containers for delivery to ocean carriers.

For Asia’s trade route to North America, the east coast, the maritime intelligence has registered a cumulative capacity of 261 822 equivalent equivalent units (Teus.) In the last six weeks. This reduction in containers and ships may affect the revenue of the Panama Canal. The Panama channel makes its money from the number of transits of the ship and the containers moving through the waterway.

“As nearly 75% of our loads go to or from the United States, any recession around the world or in the United States will in some way affect the Panama Canal, “said Boris Moreno, Vice President of Operations of the Panama Channel Authority. “That’s sure.”

One of the “Seven Wonders of the Modern World”, according to the American Civil Engineers Society, the channel has been a lightning for disputes in recent years in the battle for global supremacy between the US and China. Trump claims that channel key ports are controlled by China and threatened to confirm US control over the channel, accusing Panama of excessive percentages. China, along with the Panama government, denied these claims.

Secretary of State Marco Rubio and Secretary of Defense Pete Heget have visited Panamanski government officials in recent months.

“I think Panama has approached the last five years, and closer to China and far from the United States, “the Federal Commissioner for Marine said in an interview with CNBC Earlier this year. “I saw China and Brazil take $ 20 billion with direct contracts. We should definitely have at least a game.”

Ricaurtte Vasquez, administrator of the authority of the Panama Channel, tells CNBC that as the US is the largest economy in the world, this is reviewing Trump’s concerns.

“Whatever is said in Washington, there is a reflection everywhere,” Vasquez said. “We are trying to stay cool, calm and gathered.”

He added: “It is not true that we are governed by the Chinese. It is not true that we distinguish tariffs. It is not true that 38,000 people die in the construction of the Panama Canal. Anyone who wants to sail through the Panama Canal. And we are open to the world. This is the contract of neutrality.”

In March an investment group led by the US company Blackrock has announced that it is Trying to buy two ports at both ends of the channelAs well as about 40 others from Hong Kong based in Hutchison. The result of this The deal remains unclearS

Watch the video Lower to learn more about the business of the Panama Channel and why President Trump is focused on it.