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Panama’s Dollar Bonds Rally Amid Plans to Double Containers Passing Through
November 11, 2024
Panama’s dollar bonds rose by over 3-4% across the curve. The Panama Canal Authority said that it aims to double the number of containers passing through the route by 2045, from 8.3mn to 13.3mn annually. The plan is part of an $8bn investment strategy, which includes a water conservation approach following a severe drought that disrupted shipping between late 2023 and early 2024. At that time, containers had to use alternative routes. The canal is now encouraging cargo consolidation to reduce water usage and is expanding cargo transfer capabilities too. A previous expansion, completed in 2016, allowed the canal to focus more on container ships. However, in October 2024, bulk carriers started returning and the canal also introduced a long-term slot reservation system – this allocated 40% of its largest locks’ passage capacity for 2025, prioritizing container and LNG ships. As per analysts, although LNG traffic through the Panama canal remains lower than usual, mainly due to strong demand for US LNG in Europe and alternative shipping routes, demand from Asia is expected to increase in 2025.
Panama’s 6.7% 2036s rallied by 2.9 points to 100.4, yielding 6.65%.
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