Panama Canal Reports Overall Transit Decline, But Container Shipping Surges

• While the Panama Canal experiences a 42% YoY decline in overall transit trends for December 2023, container shipping shows resilience with a 5% increase in transits.
• The sector benefits from diverting traffic as other vessel types decrease their use of the waterway.
• Drewry Shipping Consultants notes a shift in Panama’s maritime landscape, highlighting the prominence of container vessels despite the canal’s overall reduction in transits.

Overall Transit Decline

Despite a significant 42% YoY decline in the Panama Canal’s overall transit trends for December 2023, dropping from 1,281 vessels in December 2022 to 746 transits, container shipping stands out with a 5% increase in transits during the same period. This divergence suggests a changing dynamic in the types of vessels utilizing the Panama Canal, with container ships becoming more prominent.

Container Ships on the Rise

Drewry Shipping Consultants’ latest report reveals that container vessels have increased their transits by 5%, reaching 30.6% in December compared to October figures. The trend indicates a notable shift in the canal’s usage patterns, with container ships taking a larger share of the transit volume. Despite an overall decrease in vessel numbers, container shipping remains resilient, contributing to the evolving maritime landscape of the Panama Canal.

Factors Influencing the Shift

The Panama Canal Authority’s (ACP) decision to reduce transits in January and February, later reversed due to heavy rains, has impacted overall transit figures. However, container ships have found it easier to reserve slots as some sectors, particularly dry bulk, continue to decrease their use of the route. The shift in vessel types highlights a dynamic environment where container shipping is adapting to changes in transit patterns.

Challenges and Considerations

While container ships increase their presence in the Panama Canal, challenges persist. Draught restrictions in the locks affect the capacity of container ships, with an estimated loss of approximately 350 TEUs for every foot of lost draught. Despite these challenges, container vessels maintain a noteworthy position in the canal’s transit landscape, showcasing their resilience and adaptability in the face of evolving maritime conditions.

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Source: Container News

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