A new approach to booking systems at the Panama Canal has led to a bump in container traffic through the critical shipping lane, as daily transits have continued to steadily rise, and drought conditions in the canal’s water system have eased.
According to CNBC, the Panama Canal Authority (PCA) has moved to a long-term booking system for shipping slots, which has made it easier to forecast transit demand months in advance, while reducing wait times and saving water. PCA administrator Ricaurte Vasquez says that the new system has led to an increase in average vessel sizes as well, making it so more containers are moving through the canal on fewer vessels.
Vasquez also notes that he is “optimistic” about the water forecast in the coming year, after drought conditions in late-2023 and early-2024 slowed traffic through the waterway for months. Currently, the canal is seeing roughly 30-33 daily transits. While that’s still below its typical average of 34-38 daily transits, its also well above the 22-transit low the Panama Canal saw in late-2023 at the onset of the drought. Daily transits are expected to increase to 36 by January 2025, Vasquez predicts.
Longer term, the PCA expects to make an announcement regarding its proposed Indio River dam project in the first quarter of 2025. The $1.6 billion project would involve adding a dam to the Indio River, creating a new reservoir to supplement the existing network of lakes that feed water into the locks that allow ships to move through the canal.
