# Study shows use of Panama Canal may reduce freight costs on 'Northern Arc' exports by 35% - DatamarNews

> A CONAB study finds that using the Panama Canal could cut total bulk export costs through Brazil's Northern Arc ports by up to 35%, even after canal fees. Brazilian companies and port terminals have signed an agreement with Panamanian authorities to exchange information.

- Date: 2021-02-26 · published 2021-02-26T12:00:00.000Z
- Category: logistics · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/48523-study-shows-use-of-panama-canal-may-reduce-freight-costs-on-northern-arc
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Corn](https://feedsoft.ai/c/CORN.md), [Ocean Grain Freight](https://feedsoft.ai/c/OCEANFRT.md)

## Why it matters

Lower freight costs via the Panama route could improve Brazilian grain export competitiveness into Asia, potentially shifting flows and easing some ocean freight demand over time. The impact on prices is gradual and depends on infrastructure investment.

## Read by commodity

- SOY: neutral
- CORN: neutral
- OCEANFRT: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2021-09-29 | [US soybean meal export hub damage may take months to fix \| Air Freight News](https://feedsoft.ai/events/45140-us-soybean-meal-export-hub-damage-may-take-months-to-fix-air-freight-news.md) | -2.1% | -3.1% |
| SOY | 2024-07-12 | [Pacific Northwest sees increased exports due to Panama Canal drought - Agweek \| #1 source for agriculture news, farming, markets](https://feedsoft.ai/events/17015-pacific-northwest-sees-increased-exports-due-to-panama-canal-drought-agweek-1.md) | -3.9% | -11.6% |
| SOY | 2018-12-10 | [Panama Canal, Port of Itaqui sign agreement - FreightWaves](https://feedsoft.ai/events/61481-panama-canal-port-of-itaqui-sign-agreement-freightwaves.md) | -1.8% | -1.1% |
| SOY | 2020-07-20 | [Argentina's loss in soy oil exports due to Paraná river drought is Brazil's gain - DatamarNews](https://feedsoft.ai/events/51948-argentina-s-loss-in-soy-oil-exports-due-to-parana-river-drought-is-brazil-s.md) | +0.8% | +0.6% |
| SOY | 2017-07-07 | [Panama Mission focuses on logistics and freight reduction - Revista Cultivar](https://feedsoft.ai/events/69843-panama-mission-focuses-on-logistics-and-freight-reduction-revista-cultivar.md) | -0.8% | -3.1% |
| CORN | 2024-07-12 | [Pacific Northwest sees increased exports due to Panama Canal drought - Agweek \| #1 source for agriculture news, farming, markets](https://feedsoft.ai/events/17015-pacific-northwest-sees-increased-exports-due-to-panama-canal-drought-agweek-1.md) | -2.4% | -2.7% |
| CORN | 2024-12-20 | [Analysts: Shipowners refuse to reduce freight rates ahead of holidays \| Ukrainian and World Shipping News - Ukrainian Shipping Magazine - Ukrainian and World Shipping News](https://feedsoft.ai/events/27154-analysts-shipowners-refuse-to-reduce-freight-rates-ahead-of-holidays-ukrainian.md) | +1.5% | +6.9% |
| CORN | 2017-07-07 | [Panama Mission focuses on logistics and freight reduction - Revista Cultivar](https://feedsoft.ai/events/69843-panama-mission-focuses-on-logistics-and-freight-reduction-revista-cultivar.md) | -4.4% | -3.6% |

## Sources

- datamarnews.com: https://datamarnews.com/noticias/study-shows-use-of-panama-canal-may-reduce-freight-costs-on-northern-arc-exports-by-35/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.