Panama Canal Administrator Ricaurte Vasquez said Thursday that the conflict in the Middle East and rising fuel costs could ultimately benefit the interoceanic waterway as global shippers adjust routes.
In an interview with The Associated Press, Vasquez said that higher energy, fuel and navigation costs could make the Panama Canal a more attractive option for commercial traffic.
“When costs increase, in general when the price of marine fuel rises, the Panama Canal becomes a more attractive route,” Vasquez said.
Oil prices have risen amid the war in the Middle East, which has led to the temporary closure of the Strait of Hormuz by Iran in response to U.S. and Israeli attacks. About one-fifth of the world’s oil passes through the waterway at the mouth of the Persian Gulf.
If higher energy costs persist, routing cargo through Panama can cut voyages by between three and 15 days, depending on the route, while reducing fuel consumption, he said.
Vasquez said higher fuel costs are expecte​Panama Canal Administrator Ricaurte Vasquez said Thursday that the conflict in the Middle East and rising fuel costs could ultimately benefit the interoceanic waterway as global shippers adjust routes.
In an interview with The Associated Press, Vasquez said that higher energy, fuel and navigation costs could make the Panama Canal a more attractive option for commercial traffic.
“When costs increase, in general when the price of marine fuel rises, the Panama Canal becomes a more attractive route,” Vasquez said.
Oil prices have risen amid the war in the Middle East, which has led to the temporary closure of the Strait of Hormuz by Iran in response to U.S. and Israeli attacks. About one-fifth of the world’s oil passes through the waterway at the mouth of the Persian Gulf.
If higher energy costs persist, routing cargo through Panama can cut voyages by between three and 15 days, depending on the route, while reducing fuel consumption, he said.
Vasquez said higher fuel costs are expecte ​Latest News [ SOBAN NEWS: International and National ]
