Panama Canal revenue set to surpass $5 billion as traffic recovers from drought

Panama Canal revenues are expected to exceed $5 billion this year as shipping traffic rebounds following a prolonged drought, according to the canal’s Deputy Operations Vice President, Boris Moreno.

"Last year, we earned just under $5 billion. This year, we expect slightly more, as we have recovered from the water shortage crisis in the lakes," Moreno said, Caliber.Az reports per foreign media.

He further noted that the lakes are now full, enabling operations to function at maximum level, accommodate all vessels within operational limits, and enhance overall efficiency. 

"As a result, we anticipate revenue slightly exceeding $5 billion," Moreno said.

He also stated that the canal's toll system, which has been in place for 25 years, has proven reliable and does not require modifications.

"The United States remains the primary user of the canal, accounting for 75% of its traffic, followed by China, South Korea, and Chile. The national fleet plays a minimal role in this traffic, as most container ships belong to various international shipping companies," Moreno noted.

Moreno further revealed that only two countries globally hold exclusive rights to free passage for their warships through the Panama Canal, without specifying which nations.

Meanwhile, former US President Donald Trump has previously suggested that Washington should reclaim control of the canal, which was handed over to Panama under a treaty with the country’s government.

The Panama Canal is an 82-kilometre artificial waterway that connects the Atlantic Ocean and the Pacific Ocean through the Isthmus of Panama. It is one of the most important trade routes in the world, allowing ships to avoid the long and hazardous journey around the southern tip of South America.

Construction began in 1904 under the United States and was completed in 1914. The canal was transferred to Panama on December 31, 1999, under the Torrijos-Carter Treaties.

The canal uses a system of locks to lift ships to the level of Gatún Lake and lower them back to sea level. It can accommodate vessels up to Panamax size, though an expansion in 2016 added larger locks for Neo-Panamax ships.

Handling about 5% of global trade, the canal is vital for international shipping, especially for the United States, China, and Latin American countries.

By Aghakazim Guliyev