The Panama Canal does not foresee the need for further restrictions on vessel transit until at least April, when water levels will be re-evaluated. Last year’s severe drought necessitated a reduction in daily vessel passages, but recent rains have temporarily alleviated the need for additional restrictions. Attacks on ships in the Red Sea have led to increased demand for transit through the Panama Canal. The authority plans to maintain 24 authorized transits per day until April and aims to gradually increase this number to about 36 per day if rains arrive as expected in May. However, if rainfall is insufficient, further restrictions may be applied. Maintaining water levels is crucial, as reducing vessel draft could impact shipping profitability. While demand for LNG vessels passing through the canal has decreased due to shifts in trade patterns, increased demand for U.S. LNG in Asia could alter this situation. The transit restrictions have led to a forecasted reduction in toll revenues for the current fiscal year, with an estimated loss of 1,500 vessels compared to normal conditions in 2024.
Inspired by: https://www.reuters.com/business/panama-canal-does-not-plan-transit-restrictions-least-until-april-2024-02-07/