Panama Canal Authority, Soy Transportation Coalition Ink MOU

The Panama Canal Authority and the Soy Transportation Coalition signed a memorandum of understanding Monday during a luncheon sponsored by the STC in Washington, D.C.


The agreement is aimed at fostering joint marketing efforts, the exchange of data to forecast future trade flows and market trends, and the sharing of information related to modernization and improvement projects.


By signing the memorandum, both parties affirmed their commitment to mutual growth and cooperation. The STC, comprised of nine state soybean boards, is an advocate for the improvement of transportation means for shippers of U.S. soybeans and soybean products.


U.S. grain exports are a major commodity trade for the Panama Canal. These cargoes are key to the strong performance of dry bulk transits through the waterway. According to the STC, soybeans were the most transited U.S. agricultural commodity through the Panama Canal in 2010.


Grain movements totaled 40.4 million long tons during fiscal year 2010, primarily from the U.S. Gulf of Mexico to Asia. Furthermore, soybean cargoes reached a record 15.5 million long tons (560 million bushels), which amounted to 38 percent of total grain cargoes.


This is one of many MOUs that the canal authority has been concluding with ports and shipping associations in the last few years that are aimed at encouraging transportation through the Panama Canal once the current expansion project is finished. The project, in which a third, larger set of locks are being built, is scheduled to be completed in 2014 and can accommodate much bigger ships than the current Panamax vessels.
(Source:http://www.joc.com)