The Panama Canal closed its fiscal year 2020 with an annual tonnage of 475. 1 million tons of the Panama Canal (PC / SUAB), thanks in component to the safe environment and the uninterrupted service it maintains for its consumers and labor, amid the global effect on the COVID-19 pandemic.
“The channel’s precedence to ensure the well-being of the nearly 10,000 men and women who make up our team and reaffirmed their commitment to adapt to the adjustments imposed by this pandemic to ensure the continued functioning of the water, ” said Panama. Director of the Canal Ricaurte Vasquez Morales.
The fiscal era from October 1, 2019 to September 30, 2020 painted two other photographs for the Panama Canal, with a first part that exceeded expectations, followed by a pandemic that began to disrupt lives and economies around the world.
The effect of the pandemic on the waterway was stronger between May and July, transits in the Panama Canal decreased by 20% during this period, mainly due to relief in passenger ships, transport vehicles and liquefied herbal fuel (LNG). However, transits and cargo movements were normalized in August and September, the last two months of the fiscal year, allowing the waterway to close with 475. 1 million CP/SUAB tons.
As the main direction for world trade, the Panama Canal activity mirrors that of the world economy, adding estimates that the global could contract by around 5% in 2020 as a result of the pandemic, with a further decrease of up to 8% in the United States, the channel’s main client, according to projections from the International Monetary Fund.
In the midst of this scenario, the Panama Canal closed its fiscal year with 13,369 transits, 2% relief from projections, while the 475. 1 million tons of PC/SUAB represent a 4% minimization of projections. to very degrees and the total tonnage of PC/SUAB is higher by 1%.
Continuous and service
Implemented through the channel earlier this year, COVID-related measures have helped maintain channel well-being and reduce virus transmission, thus contributing to operational activity based on the effects recorded in AF20.
In March, for example, the waterway instituted improved procedures, adding the reduction of on-site personnel to those required for the continuation of transit operations. Similarly, some other Organization of Channel staff went on vacation, while another administrative organization began operating remotely.
Market behavior
Fiscal year 2020 was marked by the U. S. -China industry war, the tightening of environmental policies in the maritime industry, and, of course, the pandemic, which continues to have an effect on the global economy.
The container carriers remained the largest in the Panama Canal, registering 166. 3 million tons of PC/SUAB, or 35% of the channel tonnage for fiscal year 20, followed by:
Although the effects of the waterway are similar to those achieved in fiscal 2020, marking only a 1% increase in total tons of PC/SUAB, expectations for fiscal year 20 were more positive as the functionality of the waterway in the first part of the year was higher than in March 2020 the effect of the pandemic began to take effect affecting the passenger segment which, as a result of the physical conditioning measures implemented that prematurely ended the cruise season, closed 10% less than expected. Transport vehicles and LNG were seriously affected by market situations due to the pandemic, whose PC/SUAB tonnage was approximately 21% and 15% below the forecast, respectively.
Negative effects on these segments were mitigated through the strong functionality of the liquefied petroleum (LPG) and bulk fuel segments, which recorded CP/SUAB tonnages of 27% and 21%, respectively, higher than expected.
The Panama Canal has also helped alleviate economic uncertainty by providing a number of transitional relief measures, adding the suspension of advance bills for transit reserve fees and other adjustments to the inland waterway reservation system. , following a close and ongoing conversation with consumers of all segments.
Maximum water
At the end of fiscal year 2020, and for the first time in 20 months, the Panama Canal was able to offer its consumers a 50-foot draft, the maximum allowable draft for boats transiting the Neopanamax locks, which was achieved through the use of water conservation. measures through the canal, optimizing water resources, as well as recent rains in the basin area.
As a result, the channel now enjoys a more competitive and reliable route, contributing to the global economic recovery. A 50-foot draft allows ships to travel the waterway with more cargo, making freight transport more efficient and, in the end, making a profit. channel’s customers.