One Of World’s Busiest Shipping Routes Saw A Drop In Vessel Traffic In March

Ship movements through the Panama Canal dropped again in March, with an average of just 33.7 vessels passing through each day, according to a recent update from the canal authority.

This brings the monthly total to 1,045 ships, showing that traffic still hasn’t returned to its full potential. In February, the daily average was slightly higher at 34.8 ships, while January saw an even lower figure of 32.6 per day.

However, all these numbers remain below the allowed daily maximum of 36 vessels, which was restored after drought-related restrictions were lifted in the third quarter of last year.

Despite reducing transit fees by 15% this year compared to 2023, the canal has not seen a full recovery in traffic. The fee cut was intended to encourage more shipping through the waterway following months of disruption.

Between late 2023 and early 2024, the Panama Canal was forced to limit the number of ships allowed to pass each day due to a severe drought.

These restrictions led to heavy congestion, longer wait times, and higher operational costs for many shipping companies.

This year, transit activity has been watched closely, especially after US President Donald Trump expressed concerns earlier about the canal’s operations.

He criticised the fees and warned that the United States could consider stepping in if Chinese or Hong Kong based companies operating near the canal were seen as a threat to US national security.

At the end of March, it announced a new plan to introduce a weekly net-zero passage slot starting in October. This slot will be offered to dual-fuel vessels that operate with low-carbon emissions.

Although conditions have improved since the drought period, the Panama Canal continues to operate below its maximum capacity.

Reference: Reuters

Source: Maritime Shipping News