Drought expected to reduce revenue from the Panama Canal by up to US$700 million

The Panama Canal expects a reduction of up to US$700 million (R$3.45 billion) in toll revenue due to ship traffic restrictions implemented due to the drought, the canal administrator announced this Wednesday (17). navigable, Ricaurte Vásquez.

“We believe that it is possible that we will have a reduction in the level of toll revenue that could be between 500 and 700 million [de dólares] for fiscal year 2024 [de 1º de outubro de 2023 a 30 de setembro de 2024]”, said Vásquez at a press conference.

According to the director, in the first three months of the current fiscal year, there were 791 fewer transits and 20% less cargo passed through the canal compared to the same period of the previous year.

Vásquez also stated that since October 2023, the Panamanian highway has been receiving US$100 million (R$493 million) less in tolls per month.

“It’s a significant reduction,” he said.

However, the canal administrator believes that the waterway, through different charges, will be able to meet the projected revenues for this fiscal year, which reach US$4.776 billion (R$23.53 billion).

The Panama Canal operates with rainwater taken from the artificial lakes of Gatún and Alhajuela, in the north of the country. The lack of rain due to the El Niño phenomenon, worsened by global warming, caused these lakes to have less water.

Faced with the shortage, the Panama Canal Authority gradually reduced the passage of vessels, from 40 before the crisis to 24.

Furthermore, the draft of the ships was reduced, meaning they had to carry less cargo to pass through.

The reduction in traffic has caused shipping companies to pay more for some of the quotas auctioned by the Panama Canal for the passage of vessels.

According to Vásquez, one vessel paid US$4 million (R$19.7 million) for one of these quotas.

In fiscal year 2023, the Panama Canal raised US$3.344 billion (R$16.47 billion) through the passage of vessels and the provision of various services.

Of this amount, it handed over to the National Treasury a record amount of US$2.544 billion (R$12.53 billion). This unprecedented value is due to changes in its tariffs to obtain more revenue, despite the lower number of traffic.

This strategic route, which in 80 km connects the Pacific Ocean to the Caribbean Sea, passes 6% of world maritime trade. Its main users are the United States, China and Japan.