Water crisis will cut income to the Panama Canal by up to US$ 700 million

He Panama Canal It plans to earn up to US$ 700 million less in tolls due to the restriction on ship transits that it has had to implement due to the drought, announced this Wednesday the administrator of the maritime route, Ricaurte Vásquez.

“We consider that it is possible that we will have a reduction in the level of toll income that could be between US$500 and US$ 700 million by fiscal year 2024″ (October 1, 2023 to September 30, 2024), Vásquez said at a press conference.

According to the manager, during the first three months of the current fiscal year there have been 791 fewer transits and one twenty% less cargo that has passed through the canal compared to the same period last year.

Vásquez also assured that since October 2023 the Panamanian highway is receiving one hundred million dollars less in tolls per month.

“It is a significant reduction,” he claimed.

However, the canal administrator believes that the sea route, through different charges, will be able to meet the projected income for this fiscal year, which reaches US$ 4,776 million.

The Panamanian canal works with rainwater obtained from the artificial lakes of Gatún and Alhajuela, in the north of the country. The lack of rain due to the El Niño phenomenon, aggravated by global warming, has caused these lakes to have less water.

Given the shortage, the Panama Canal Authority has gradually reduced the passage of vessels, going from 40 before the crisis to 24. In addition, the draft of the vessels has been reduced, which has caused them to carry less. load to be able to pass.

The reduction in transit has caused shipping companies to pay more money for some of the slots auctioned by the Panama Canal for the passage of vessels.

According to Vásquez, a boat paid US$ 4 million for one of those spots.

In fiscal year 2023, the Panama Canal generated US$3,344 million from the transit of vessels and the provision of various services.

Of that amount, he delivered the record figure of US$2,544 million to the National Treasury. This unprecedented figure is due to the fact that, despite the lower number of transits, the ACP made changes to its tolls to obtain more revenue.

Through this strategic route, which in 80 km connects the Pacific Ocean with the Caribbean Sea, passes the 6% of global maritime trade. Its main users are the United States, China and Japan.