Amid the argue, Japan has force out China as the canal's second-largest user, while US businesses remain the canal's largest customers, he said.

 

US President Donald Trump complained last week that China has not expanded its purchases of American farm products, a promise he said that he secured last month at a meeting with President Xi Jinping. China is depending more on countries just like Qatar, and Trinidad and Tobago, for gas, and Brazil for soy, according to Mr Quijano. 'This is a bigger disadvantage to the US, because China just buys the same products elsewhere,' he said.

 

The canal estimates income of US$3.1 billion this fiscal year, down one per cent from 2018, which would be the first drop since the US$5 billion canal improvement was launched three years ago.

 

The trade dispute has sliced traffic from the US to China by all about eight million tons since the existing fiscal year started in October, according to Mr Quijano. Traffic using the canal on the most important route, from the East Coast of the US to Asia, was 78 million tonnes in the 2018 fiscal year.

 

In spite of this, Moody's Investors Service this year advanced the canal's credit rating to A1, from A2, pointing out its strong financial performance since the expansion, and low debt levels.

 

Mr Quijano said the US-China dispute could cost the canal extra cash in the event that tensions continue. On the other hand, it may get a boost from new LNG terminals scheduled to come online in the coming months in the US states of Georgia and Texas which will help supply developing demand from Japan and South Korea, he said.

 

Low water levels due to a drought this year pushed the canal authority to restrain the size of vessels allowed to cross the new set of locks.

 

A draft restriction of 44 feet (13.4m) that basically affects container ships will probably remain in effect for the coming weeks until rainfall picks up, Mr Quijano said. The canal has studied the possibility of building an additional set of locks for even bigger ships, but demand isn't likely to merit such an undertaking in the next 10-15 years, he said.

 

Source: TRONSERVE