The Panama Canal Authority reported fiscal year-end results
for 2020, which like, most parts of the shipping industry, were impacted by
global economic factors. As a result, volumes at the Panama Canal were largely
flat with declines in both the number of transit and tonnage versus
projections.
Commenting on the factors that impacted the Panama Canal’s
performance in 2020, the authority highlighted it was a year which began with
the effects of the U.S.-China trade war as well as tightening environmental
regulations, all of which impacted the shipping industry. Despite that, the
authority reported that the year, which began on October 1, 2019, had begun
strong, exceeding expectations.
The impact of the pandemic had begun to show early in
calendar 2020. Cruise ship traffic had stopped in the canal by April. The
height of the pandemic’s impact on the waterway, however, occurred the
authority reported between May and July. During that time, transits declined by
20 percent, mainly due to reductions in passenger ships, vehicle carriers, and
liquefied natural gas (LNG) tankers.
As global trade began to recover, the authority reports that
transits and cargo movement normalized in August and September, the last two
months of the fiscal year.
"The Canal's priority was to ensure the well-being of
the nearly 10,000 men and women who make up our team and reaffirmed their
commitment by adapting to the changes imposed by this pandemic in order to
guarantee the continuous operation of the waterway," said Panama Canal
Administrator Ricaurte Vásquez Morales. The authority also noted despite all
the issues that it was able to maintain uninterrupted service.
For the 12 months, the Panama Canal saw a total of 13,369
transits, which represented a two percent reduction compared to projections.
The canal handled a total of 475 million Panama Canal tons (PC/UMS) which was
an overall drop of four percent compared to projections. However, offsetting
the overall decline was a slight increase in the tonnage for what the canal
authority calls high-draft transits or the largest vessels to use the canal.
Analyzing the data by segments of the shipping industry,
containership made up more than a third of total tonnage transiting the canal
in FY 2020 (more than 166 million tons) followed by bulk carriers, which were
half the tonnage of containerships. Also, tankers and chemical tankers made up
nearly 70 million tons while both LNG and LPG carriers each made up
approximately 45 million tons. LPG tonnage, however, was down nearly 15 percent
versus projections.
The segments that reported the strongest declines included
car carriers which were down more than 20 percent versus projects. Cruise ship
tonnage was down 10 percent versus expectations for 2020.
The Panama Canal worked to mitigate the declines in volumes
and respond to the shipping industry by offering a series of temporary relief
measures, including the suspension of advance payments for transit reservation
fees and other changes to the waterway's reservation system. Currently, these
measures have been extended through December 31, 2020.
The Panama Canal Authority believes that the situation has
stabilized and looks towards rebuilding in the future. They noted that at the
end of FY 2020, for the first time in 20 months, the Panama Canal was able to
offer a 50-foot draft, the maximum draft allowed for vessels transiting the
Neopanamax Locks. This creates additional efficiencies for shippers who can
increase the load on their vessels scheduled to transit the canal. In addition,
the Panama Canal Authority recently put out a request for qualifications as the
first step in a long-term water management program that they believe will provide
more consistency and reduce draft restrictions that have been necessary as part
of the current water management programs.