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The latest news and developments from Panama, one of the world’s most important shipping nations.

Panama Canal revenues up 14.9% in 2023 despite transit restrictions

In 2023 the Panama Canal’s revenues increased by 14.9% to $4.97 billion despite handling less cargo due to draught and transits restrictions caused by drought.

Michele Labrut, Americas Correspondent

February 26, 2024

1 Min Read
Ricaurte Vasquez, Panama Canal Administrator
Photo: ACP

While revenues were Panama Canal only 511.1 million PC/UMS tonnes moved during Fiscal Year 2023 (October 1, 2022-September 30, 2023), compared to 518.5 million PC/UMS tonnes moved in FY2022, according to Panama Canal officials.

While the canal continues to face water shortages due to climate change resulting in transit restrictions it expects revenues to rise a further 2.7% in FY2024.

The ACP forecasts revenues for Fiscal Year 2024 will be 74.56% from tolls, 23,21% from other maritime services revenues, 1.05% from electricity sales, 0.73% from potable water sales and 0.45% from other items.

The prospect of an increase in budgeted revenues comes from the tolls system implemented in January 2023, ending in 2024, although an impact on revenues is also expected due to transit and draught restrictions that have been in place for months.

The new toll structure started in January 2023 and will end in 2025.

Canal Administrator Ricaurte Vásquez said Panama needs more water for its people and the canal. The ACP has studied this for years and ACP suggests making the canal’s water sources with an additional reservoir. However, this needs action from the government and lawmakers, which the authority says will help 55% of the people, industry, and shipping.

Related:No change in Panama Canal restrictions before April

It says the canal’s role is vital for global trade and Panama’s economy.

 

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Panama Canal

About the Author

Michele Labrut

Americas Correspondent

Michèle Labrut is a long-time Panama resident, a journalist and correspondent, and has continuously covered the maritime sector of Central & Latin America.

Michèle first came to Panama as a press attaché to the French Embassy and then returned to the isthmus as a foreign correspondent in the 1980s.

Author of Seatrade Maritime's annual Panama Maritime Review magazine and of several books, Michèle also wrote for Time magazine, The Miami Herald, NBC News and the Economist Intelligence Unit. She has also collaborated in making several documentaries for the BBC and European and U.S. television networks.

Michèle's profession necessitates a profound knowledge of the country, but her acumen is not from necessity alone, but a genuine passion for Panama.

In 2012 she was awarded the Order of Merit (Knight grade) by the French Government for her services to international journalism and in 2021 the upgrade to Chevalier grade.

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