Panama Canal to Boost Transit Slots Amid Rainy Season Relief

The Panama Canal plans to increase its daily transit slots from 34 to 36 in September, following relief from drought-imposed restrictions due to recent rains. This adjustment aims to normalize operations and boost revenue by 18% for the next fiscal year. Authorities also plan to build a reservoir to secure long-term water supply.

The Panama Canal is set to expand its daily transit slots for vessels from 34 to 36 starting in September, according to the canal's deputy administrator. This increase comes as recent rains have allowed authorities to ease restrictions that were imposed due to severe drought conditions.

In 2023, Panama experienced its third-driest year on record, significantly lowering the canal's water levels and limiting vessel transit. At its worst, over 100 ships were delayed for up to 21 days, impacting about 5% of global shipping. However, operations are now nearing normalcy, confirmed Deputy Administrator Ilya Espino.

The early rainy season has facilitated increased ship crossings. The Canal Authority expects this recovery to boost revenues by 18% in the 2024-2025 fiscal year. To address long-term challenges, plans for a new $1.6 billion reservoir are underway, ensuring sufficient water supply for the canal's operations.

(With inputs from agencies.)