Panama Canal Faces Navigational Challenges Amid Rising Costs and Alternative Routes

The Panama Canal witnessed an increase in daily vessel transits to 34.2 in December, yet failed to fully utilize its capacity due to alternative routes chosen by some ships. The Canal Authority anticipated a full return to 36 passages daily post-drought constraints, but rising costs and competition persist.

The Panama Canal recorded an increase in the number of vessels passing daily to 34.2 in December, though it did not completely fill available slots. This suggests many ships are opting for alternative routes despite a lift on transit restrictions following a severe drought earlier this year.

The Panama Canal Authority, which had hoped to return to an average of 36 transits per day during peak seasons, saw only 33.3 vessels passing through daily in November, and 31.4 in October. This highlights ongoing challenges faced by the canal as some shippers prefer alternative routes.

Amid increased passage fees, some bulk carriers and LNG tankers bypass the Panama Canal in favor of longer routes that match rising costs. The issue has sparked comments from U.S. President-elect Donald Trump about potential actions regarding the canal, yet the canal overcame toll revenue setbacks, maintaining optimism for the year ahead.

(With inputs from agencies.)