NCI Market Update Webinar Series: Special Edition | Featuring Javier "Beto" Carrillo Koo

Javier “Beto” Carrillo Koo, International Trade Specialist for the Canal de Panamá.

The Northern Crops Institute (NCI) held a Market Update: Special Edition on December 1st, 2021. The hour-long special edition featured Javier “Beto” Carrillo Koo, International Trade Specialist for the Canal de Panamá. Mr. Beto gave a presentation titled “The Panama Canal | History and Role in the International Grain Trade Market.”

At the start of the presentation, Beto discussed the history of the Panama Canal with NCI’s viewers. The Panama Canal was started in 1534 by Charles V of Spain. Since its beginning, it has changed hands to the United States and then to the Government of Panama. The Government of Panama is credited with the expansion of the Panama Canal, which was finished in 2016. 

The Panama Canal plays an important role in trade between the United States and the rest of the world. It provides connectivity with 144 maritime routes, 1700 ports, and connects to 160 counties. The Panama Canal plays a part in the connectivity and transportation of goods around the world. Beto pointed out the main route, the most important route, that extends from the East Coast of Central America all the way to Asia. The United States is the main user of the Panama Canal, followed by China and Japan. Since the expansion of the Panama Canal in 2016, an increase of larger vessels has utilized the canal. This has allowed for the energy, container, and grain markets to utilize the Panama Canal and its waterways. 

Since the start of the pandemic, the Panama Canal viewed a huge decrease in oceangoing transits. Beto showed a great visual aid on the influence that the pandemic has had on these markets. He showed how the pandemic had an important impact on the traffic behaviors that were decreasing in the Panama Canal. “We have seen a huge recovery of the market… some of that has to do with the importance of the grain market.”

The grain market plays a very important role when it comes to the Panama Canal. The grain market is one of the most important markets to use the canal waterway. Even though many of the different industries were affected by the pandemic, the food and energy sectors were not. Any market related to food and energy was protected. These industries did not rest during the pandemic. The grain market was certainly part of this. Over the last few years, the Panama Canal has observed a huge spike in US total grain exports. The main grain that runs through the Panama Canal is soybeans. In the last few years, there has been a major increase in soybean exports. This is mainly due to China and the changing relationship between the United States. 

Even though demand is growing, the Panama Canal still faces many challenges. Following the pandemic, there has been a lot of congestion in U.S. ports. One of the main reasons for this is because of the high demand we are currently experiencing. Money was very tight during the pandemic, but now that many mandates have been lifted, individuals have been spending money like crazy. Another challenge that they face are the new variants that will define different social standards. With many challenges looming in the future for the Panama Canal, we can thank the individuals who are working tirelessly to contribute to these markets. 

These market updates were created to engage with past and present course participants and to offer market insight to those professionals. By providing this pertinent information on various topics, NCI has fostered growth and learning all around the world. NCI greatly appreciates contributions from speakers like Javier “Beto” Carrillo Koo during these Market Update webinars.

For more information about the future webinars, click here.

Click below to watch yesterday’s presentation.