Since May last year, ACP has decided to reduce daily transit volume. The continuous drought, coupled with El Ni ñ o weather phenomenon, has led to a large number of global merchant fleets deciding to avoid the waterway due to congestion and high tolls.
At the end of last year, the pressure on the Panama Canal increased as the Houthi armed forces in Yemen began attacking merchant ships in and around the Red Sea.
According to Clarkson Research, the Panama Canal accounts for 2.5% of global trade volume, and due to restrictions on transit through the Panama Canal, transit tonnage has decreased by one-third.
ACP stated that after a year of reduced water intake and transit volume due to drought, the dry season is nearing its end and transportation will return to normal next year.
ACP added that based on the current and expected water levels of Lake Gaton, the Panama Canal added additional berths in March, bringing the total number of daily crossings to 27, a significant increase from the previously feared 18 crossings per day.
ACP explained that "recent precipitation and sustained water-saving measures in the canal are reversing the situation. There are still misunderstandings about the impact of recent droughts on canal operations and global trade, so this statement aims to alleviate people's concerns“
ACP claims that there has been no situation of long queues of ships, and the number of ships waiting outside the canal is equivalent to the expected number during the daily transit period. Most ships are booked and often arrive early. ACP also adds that these ships usually refuel or replenish supplies before transit.
The Canal Management Committee stated that the transit restrictions caused by drought will not continue indefinitely.
Current predictions indicate that stable rainfall will occur in late April and will continue for several months. If this is indeed the case, the canal plan will gradually relax traffic restrictions and fully restore normal operation by 2025, with a daily throughput of 36 times.
The canal management agency denied the claim that ships had to wait for a long time to pass through the canal. They stated that over 75% of the ships waiting this week have been pre booked and will transit on designated dates, with extremely short waiting times or even no need to wait.
The data shows that the average waiting time for ships without appointments this year is slightly less than 2.5 days, far lower than the 3.6 days from January to March last year and the 3.8 days during the same period in 2022.
ACP emphasizes that as long as advance booking is made, transit is still reliable.
However, ACP acknowledges that last year, especially in October and November, priority transit auction prices skyrocketed, with port fees for each ultra large bulk carrier reaching as high as $4 million.
However, since the peak last year, auction prices have stabilized. The current prices are generally close to normal levels, but for customers who may not be able to secure reservations through other means, auctions are still a solution.
British ship broker Gibson stated in March that the average winning price for oil tankers using old locks in the first half of 2023 is approximately $100000. But in the fourth quarter, this number jumped to just over $600000. So far this year, this number has fallen to just over $200000.
ACP also stated that competition for alternative shipping routes will not affect the position of the Panama Canal in global trade.
