Panama Canal handled less than 75% of volume in 2024
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.
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. A new vessel booking system shows more cargo volumes ahead of Lunar New Year and decisions on a major dam project are coming so the authority is somewhat optimistic.
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 percent of all US container traffic travelling 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.
