As is known, the Panama Canal, which represents about 5-6% of global trade, is one of the most important arteries for maritime trade.
This route is used by some 14,000 vessels per year, with a total value estimated at over 270 billion dollars.
In the first months of 2024, there was a drastic drop in water level (partly due to general climate change and the well-known meteorological phenomenon “El Nino”), which led to a reduction in the number of daily transits of ship units; This has not only affected the decrease in the regular quantity of goods transported, but has also increased the waiting time for access to the canal, resulting in congestion, repercussions on the maritime freight market and the entire global logistics chain. This has inevitably led to higher prices for the cargo.
Potentially, the channel can handle 40 transits per day, but last March due to limited draughts, the Panama Canal Authority (ACP) announced a restriction of a maximum of 27 daily transits, these have been increased since April to 32, thanks to a gradual improvement in overall conditions.
With the start of the rainy season (from April to December) the water level has partially recovered. The authorities have announced that the transits will increase to 35 after about 5 August.
In this regard, it is interesting to note that while reducing the number of daily transits, the revenues received by the Panamanian government have even increased. The Panamanian Authority has introduced higher toll rates to face the water crisis, which the shipping companies have accepted to ensure passage through the canal. Revenues for the Canal Authority have increased by about 10-15% compared to last year, although they face a 1.5% reduction in tonnage.
Precisely because of this potential threat, the Panama Canal Authority has announced.
In recent weeks the promotion of a project worth about 1.6 billion dollars, to build a large reservoir along the river banks to ensure the necessary water supply and maintain a minimum of 36-37 daily crossings. The project is expected to take between 4 and 6 years.
This project will encounter several political obstacles because the Panamanian Government will have to define in advance the boundaries of the watershed to allow the Authority to control the tank’s space and remove those legal restrictions aimed at the construction of tanks in the country.
