The Panama Canal Authority (ACP) reported a significant 29% decline in vessel transits during Fiscal Year 2024 (October 1, 2023–September 30, 2024), with 9,936 transits compared to 12,638 in the previous year.
The sharp decrease was largely attributed to a prolonged dry season and severe drought, which led to navigation restrictions.
Throughout much of 2023, the ACP imposed restrictions on both the draft and the number of daily transits through the Canal, at one point reducing transits to just 22 per day, down from the normal 36.
The restrictions were at their most severe during the first quarter of FY2024, but from January 16, 2024, the ACP gradually eased the limits, and conditions began returning to normal in subsequent months.
The container ship sector was the least affected by the drought, while other sectors, such as gas carriers and dry bulk ships, saw more significant reductions in transit numbers.
In the neo-Panamax locks, transits dropped 21% year-on-year to 2,852. However, container ship transits through these locks rose slightly by 2% (an additional 36 transits) compared to FY2023. Very Large Gas Carriers (VLGCs), the second-largest users of the neo-Panamax locks, experienced a 17% reduction, while LNG carrier transits plummeted by 66%, down to 214.
In FY2024, container ships, VLGCs, and LNG carriers accounted for 95% of neo-Panamax traffic, up from 84% in FY2023. Non-container/VLGC/LNG transits saw a steep decline of 74%, or 428 fewer transits compared to the previous year.
Transits through the Panamax locks also fell by 32% to 7,084. Dry bulk vessels were hit hardest, with a 46% drop, while chemical tankers, general cargo, and refrigerated carriers saw declines of 17%, 45%, and 20%, respectively.
Additionally, the ACP announced the introduction of a new Long-Term Quota Allocation methodology starting October 1, 2024, for all market segments except for LNG and Liquefied Petroleum Gas (LPG). This system, integrated into the Canal’s booking process, aims to improve transit security and offer greater flexibility.
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