Panama ports report strongest volume growth in three years

According to statistics released by the Panama Maritime Authority (AMP) all terminals showed double-digit growth during the seven month-period with an average of 18.5% with a combined volume of 5.59 million teu.

At Colon Container Terminal (CCT), on the Atlantic side, owned by Evergreen Marine, volume grew by 22.3%.

Last month, CCT received 12 hybrid RTGs worth $23 million, aimed at optimising the terminal’s efficiency and competitiveness and improving environmental sustainability, said CCT.

“Volume has significantly grown from Asia, in our case with a specific service from MSC (Santana Service). The ongoing Red Sea crisis has led to divert commercial routes to Panama, USA to SAEC in the second leg and the INDUSA service in 2 legs. There is the gradual disruption brought by ever larger tonnage deployment which isolated mean a higher transhipment ratio,” said President of CCT, William Elliott.

“Congestion in other transhipment hubs in the Caribbean has also work positively towards the increment of transhipment volume into CCT and Panama in general.”

SSA Marine’s MIT terminal saw a growth of 10.5%.  Its general manager, Manuel Pinzon commented that the “rise can be attributed to both supply and demand factors”.

“On the supply side, the Panama Canal’s reduction in transit numbers and allowable vessel draughts, due to a lack of rainfall in the Canal watershed, created an opportunity for ocean carriers to exploit Panama’s land bridge more effectively. The ability to connect containers via rail or truck between the Atlantic and Pacific oceans increased container volumes handled by SSA Marine MIT and other container terminals in Panama, as global supply chains continue to seek efficient routes to navigate trade uncertainties and logistical challenges,” Pinzon said.

Related:Panama port container volumes decline for second year running

“On the demand side, the global economic recovery post-pandemic has significantly driven up container throughput. Imports to Latin America have risen by nearly 10%, while exports from the region have increased by over 7%. As international trade volumes surged with the revival of global markets, ocean carriers have increasingly relied on Panama’s ports to expedite their services between major economic centres,” he added.

Balboa, on the Pacific side Hutchison’s Panama ports registered container volume growth of 14.7% while Cristobal, Panama Ports’ terminal on the Atlantic side, saw volume increased by 30.5%.
“A key factor driving this growth has been our strategic expansion of operations to accommodate the increased volume diverted from the Canal due to draught restrictions,” commented Jared Zerbe, Chief Executive Officer, Hutchison Ports.

Related:Maersk switches liner service from Panama Canal to land bridge

“Additionally, the addition of new shipping line services at both ports has let us strengthen our intermodal hub, integrating ship to ship operations by truck and rail transportation. This comprehensive approach has enabled us to capitalise on the growing demand for efficient logistics solutions further bolstered our position as a leading logistics hub in the region.”

On the Pacific side, PSA Panama posted an increase in volume of 26%.

“At PSA Panama, we work closely with our shipping line customers to offer resilient alternatives in response to the drought affecting the Panama Canal. Thanks to the proactive collaboration, we have been able to accommodate higher volumes per call and implement flexible stacking strategies that allow vessels to reduce their draught and meet the Canal's requirements,” said Enrique Piqueras, General Manager of PSA Panama.

“Additionally, through efficiencies gained, we increased our gate capacity, facilitating the transfer of containers by land between the Pacific and Atlantic, contributing to a 25% growth in our operations during the first half of 2024.”