Reuters has reported that the Panama Canal’s toll revenues have dropped by roughly $100 million since October 2023, month-on-month (MoM).
According to the canal’s administrator, reduced income from tolls could total around $700 million come Spring, should this trend continue.
Drought impediments have triggered this fall in revenue through compelling the canal’s managers to implement shipping restrictions on the key shipping gateway that links the Pacific and Atlantic Oceans, reported Reuters. The canal’s fiscal year starts from October.
READ: Panama Canal water woes set to continue into 2024, experts predict
Ricaurte Vasquez, Canal Administrator, said in a press conference to reporters it was “possible” for the trend of falling revenue tolls to persist.
Despite this hinderance, the canal is projected to meet its income targets for the fiscal year set out in its budget. This is partly due to a toll increase that has come into effect recently, according to Reuters.
In August 2023, the Panama Canal Authority (PCA) opted to limit the daily transits in response to rising congestion.
More recently, A.P. Moller – Maersk (Maersk) announced changes to its services due to the ongoing water situation in the Panama Canal.
