The Other Canal

As the world’s attention remains set on events unfolding in Egypt, the market continues to carefully monitor the stability of the Suez Canal. As was outlined in last week’s opinion, volatility at shipping choke points has the potential to change the rate environment overnight. This week marks a notable date for the world’s other famous canal an ocean away. One year ago Wednesday, ground was broken on the expansion project for the Panama Canal – an event that will undoubtedly reshape world trading patterns. Taking into account recent economic trends and developing trade routes, the Panama Canal expansion may change the face of shipping, but tanker markets should remain largely unaffected. Download here