THE panama Canal Authority reported a 29 per cent drop in vessel transits during fiscal year 2024, with LNG and dry bulk shipments taking the biggest hit, reports NBC News
But Ricaurte Vasquez, administrator of the Panama Canal Authority, operational investments and technologies are helping to increase trade.
After record drought and worldwide trade issues, a new vessel booking system shows more cargo volumes ahead of Lunar New Year and decisions on a major dam project are coming.
After two years of record drought conditions amid a challenging El Nino weather system which decimated vessel transits, the Panama Canal is experiencing a trade rebound.
Mr Vasquez said the canal has changed its business model to optimise water usage and improve forecasting in an effort to restore certainty and reliability, introducing a new long-term booking system and planning to make a decision on a potential dam project early next year.
The US is the largest user of the canal, with total US commodity export and import containers representing about 73 per cent of Panama Canal traffic, and 40 per cent of all US container traffic traveling through the Panama Canal every year. In all, roughly US$270 billion in cargo is handled annually.
The Panama Canal's move to a fully booked system has resulted in an increase in the average vessel size, allowing more containers to go through the canal on fewer vessels, and saving water and helping to reduce wait times. This led to a windfall of between $400 million-$450 million in the fourth quarter.
'Container [vessels] took a good chunk of those slots, and that provides certainty that they will transit,' said Mr Vasquez.
'Our water forecast is much better right now for the next year. It is more optimistic, and we are currently working at essentially the normal levels of water, both at Lake Gatun and almost at Alajuela Lake.'
SeaNews Turkey
But Ricaurte Vasquez, administrator of the Panama Canal Authority, operational investments and technologies are helping to increase trade.
After record drought and worldwide trade issues, a new vessel booking system shows more cargo volumes ahead of Lunar New Year and decisions on a major dam project are coming.
After two years of record drought conditions amid a challenging El Nino weather system which decimated vessel transits, the Panama Canal is experiencing a trade rebound.
Mr Vasquez said the canal has changed its business model to optimise water usage and improve forecasting in an effort to restore certainty and reliability, introducing a new long-term booking system and planning to make a decision on a potential dam project early next year.
The US is the largest user of the canal, with total US commodity export and import containers representing about 73 per cent of Panama Canal traffic, and 40 per cent of all US container traffic traveling through the Panama Canal every year. In all, roughly US$270 billion in cargo is handled annually.
The Panama Canal's move to a fully booked system has resulted in an increase in the average vessel size, allowing more containers to go through the canal on fewer vessels, and saving water and helping to reduce wait times. This led to a windfall of between $400 million-$450 million in the fourth quarter.
'Container [vessels] took a good chunk of those slots, and that provides certainty that they will transit,' said Mr Vasquez.
'Our water forecast is much better right now for the next year. It is more optimistic, and we are currently working at essentially the normal levels of water, both at Lake Gatun and almost at Alajuela Lake.'
SeaNews Turkey
