The Panama Canal Authority expects a slowdown in global trade next year as weaker economic activity curbs shipping demand, even as liquefied petroleum gas (LPG) flows through the canal continue to expand sharply.

Administrator Ricaurte Vásquez said on Monday that “a reduction in world trade is likely next year amid the economic slowdown,” but noted that the canal’s share of U.S. LPG exports to Asia has risen to more than 95% from 80%, underscoring the growing importance of energy shipments in its traffic mix.

Vásquez said the passage of LPG vessels is expected to keep increasing, with strong U.S. export growth and firm Asian demand driving throughput despite broader shipping weakness.

He added that many U.S. companies have shown interest in a planned LPG pipeline project, aimed at improving energy transport efficiency and easing congestion on the canal’s busy route.
Source: Investing Live