Generally, the outlook for 2024 remains positive with a lot of opportunities. The project funnel for renewables, energy and infrastructure projects remains strong, and we see a lot of business coming our way. Imports to the Middle East, US Gulf Coast and Australia look promising.
However, the main threat remains geopolitical tension, economic development and China, among other operational factors. Geopolitical issues, such the tension in the Middle East, the China Taiwan conflict and the trade war between the US and China, are beyond our control but need to be closely monitored. Also, the weak Chinese economy remains a problem, and we see less China controlled cargo being shipped this year. We hope the outlook of the Chinese economy will improve in 2024. The most pressing issue on the operational side appears to be the new Panama Canal regulations, drastically limiting the throughput of the canal. This will have wider implications for shipping to the US Gulf Coast with many owners most likely routing vessels via the Cape of Good Hope.
As geopolitical issues are always beyond our control, we mostly worry about operations issues such as those with the Panama Canal passages. If the issues of low water levels combined with reduced number of transits per day remains, this will totally reshape the routing of vessels from Asia to the US Gulf.
AAL will continue to focus on its core project clients and ensure regular sailings outbound Asia to the main hotspots in the US Gulf, Australia and the Middle East. We’re focusing not only on China but also on Southeast Asia and Indian export cargo to mitigate potential risk. And four new Super B-class vessels delivered in 2024 will further strengthen our service offerings for our customers.