Dr. Ricaurte Vasquez Morales, Administrator, Panama Canal Authority

https://pancanal.com/
Author picture

Dr. Ricaurte Vasquez Morales

The COVID-19 pandemic has caused significant disruptions in the global supply chain, and its recovery will depend on important factors such as outbreaks of new COVID-19 variants, vaccination rates, supply chain stability, introduction of zero-carbon container ships to the fleet, container box shortages, evolution of the energy crunch, and economic recovery. All of these will be decisive for shipping lines and their strategies to order new vessels, while optimizing current fleet capacity.

Container shipping is entering a new cycle in which the catalyst for successful performance will be collaborative optimization between all parties in the supply chain to avoid inefficiencies and make proper investments to add capacity. The biggest challenge in the short term is managing demand in the new reality of changing consumer patterns, with a focus on sustainability, following the urgent call from the industry to decarbonize shipping in a highly volatile environment.

The Panama Canal demonstrated its resilience through the COVID-19 pandemic, prioritizing our workforce and customers, while implementing health, operational, and financial measures to maintain uninterrupted service and flow of global seaborne trade. In addition, by offering the shortest route between Asia and the US East Coast, the waterway helps in global efforts to reduce greenhouse gases emissions from the maritime industry.

The deployment of larger vessels has been accelerated by COVID-19 and the effects of climate change have become more evident. The Panama Canal has committed to becoming carbon-neutral in its operations by 2030, as it continues to offer a safe, efficient, and reliable service.