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Panama Canal poised to benefit as war in Middle East disrupts oil routes

Panama Canal Administrator Ricaurte Vásquez on Thursday said the conflict in the Middle East and rising fuel costs could ultimately benefit the interoceanic waterway as global shippers look for shorter and safer routes.

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00:01The Panama Canal is expected to handle more ships due to the ongoing conflict in Iran.
00:06The Canal Administrator on Thursday said the conflict in the Middle East and rising fuel cost
00:11could ultimately benefit the interoceanic waterway as global shippers seek shorter, safer routes.
00:22Depends a lot on how deep the crisis is and how long it lasts,
00:26because the first blow will be the cost of energy, the cost of fuel, the cost of shipping.
00:31When costs increase in general, when the prices of marine fuel rises, the Panama Canal becomes a more attractive route.
00:45About one-fifth of the world's oil passes through the strategic waterway.
00:50If higher energy costs persist, routing cargo through Panama can cut voids by between 3 and 15 days,
00:59depending on the route, while reducing fuel consumption.
01:03If Middle Eastern supplies are disrupted, shipments may be replaced by other sources,
01:08including the United States, which could redirect some LNG cargo from Europe to Asia via Panama.
01:15Routes will change, and the Panama Canal and gas will likely be among the sectors that benefit the most.
01:21But in general, trade could be reorganized to reduce risk, taking into account insurance costs
01:26and how the risk of insecurity for ships has increased.
01:29Panama can certainly play an important role in the reorganization of trade routes.
01:35However, the Panama administrators have cautioned that any changes will not be immediate
01:40and will depend on how long cargo operators expect the conflict and instability in the Gulf last.
01:45So you're Bradst.
01:46Where's the one-fifth?
01:47Why are the ones trying to put franchisees against a mainland?
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