Panama Canal is Back to Normal
Despite the drought, which has drastically reduced pass-throughs between 2023 and 2024, a $3.5 billion profit is expected to be realized
Since August, traffic in the Panama Canal has normalized. For almost a year, the drought has put a strain on trade traffic along the crucial route linking the Atlantic and Pacific, forcing the Authorities managing this communication route to drastically reduce the number of voyages. The boats’ draft has also returned to a maximum of 50 feet, whereas it was previously reduced to 44.
In February 2024, the number of daily transits dropped to 18. Starting August, it has returned to about 36 daily transits. The drought between 2023 and 2024 led to an alarming drop in the level of the lakes feeding the canal locks, resulting in reduced traffic at a particularly hard time for international shipping, given the difficulties in transit also from the Suez Strait due to the Houthis incursions.
As the Inspector General of the Cocoli locks, Jorge Pitti, explained to Efe Agency, the forecasts for the Panama Canal are “very good this year and next year,” given that abundant rainfall is expected to keep the Gatun and Alhajuela Artificial Lakes level.
In fact, despite difficulties in the first half of the year, Panama Canal Authority Administrator Ricaurte Vazquez predicts that at current traffic levels, the fiscal year (which in this case ends September 30) will produce a net profit worth $3.5 billion with 24 average daily transits and 430 million tons of cargo moved. According to Vazquez, as reported by Italian news agency ANSA: “We have developed a different tariff structure, depending on the locks used by the vessels, to set the cost of water use. This has allowed us to optimize revenues, reduce operating expenses, and remain competitive.”
