Despite a severe drought that decreased the number of vessels passing through the waterway, the Panama Canal’s profit grew by almost 9.5% to $3.45 billion in the fiscal year that ended in September.
The canal’s authorities were forced to curtail the number of ships permitted to pass daily between late 2023 and early 2024, while also reducing their maximum draft, due to the third driest year in its history, which decreased the amount of water available for operations.
After rainfall restored the nation’s water reservoirs later this year, the restrictions—which prompted some vessels to pass with lengthy delays and others to look for alternate routes—were lifted.
On average, 27.3 ships passed through the waterway each day, compared to roughly 36 the year before, and 423 million tons of goods passed through its locks. However, a 5% cut in operating expenses lessened the drought’s financial impact.
Bulk carriers and liquefied natural gas tankers are among the vessels being encouraged to return by the canal, which is often not filling the 36 passage slots per day it currently offers. Additionally, $8.5 billion in projects, including new infrastructure, are being advanced over the next seven years.
Shippers can bid for spaces up to a year before passage using a new long-term reservation system. The fiscal year saw a 12% decrease in the amount of water used for each transit due to conservation initiatives.
In order to address catastrophic weather events in the long run, Panama is placing a wager of $1.6 billion to dam the Rio Indio River. It is anticipated that hundreds of nearby families will need to relocate in order to build the new reservoir.
