The number of container ships transiting the Panama Canal has seen an increase

Source: 5688.cn

The number of container ships transiting the Panama Canal has seen an increase.

In December of last year, the overall transit trend through the Panama Canal saw a 42% year-on-year decline, but the transit volume of container shipping is on the rise as other types of vessels change course.

According to the latest report on the Panama Canal released this week by Drewry Shipping Consultants, the number of transits in December 2023 decreased by 25% compared to October, totaling 746 transits. This is a 42% decrease compared to December 2022, which saw 1,281 ships.

However, a closer look at the data reveals that, in contrast to the overall trend, the transit of container ships in December increased by 5% to 30.6% compared to October.

Simon Heaney, consultant at Drewry Shipping Consultants, stated, "I suspect that as the daily transit volume increases, we will continue to see container ships gaining a larger share of the Panama pie, with daily averages remaining relatively the same, perhaps even higher."

In December of the previous year, the Panama Canal Authority (ACP) announced a reduction in the number of transiting vessels to 20 and 18 per day for January and February, respectively. However, following several heavy rains, the ACP changed this decision, expecting a further decrease in the overall number of ships this year.

Instead, they increased the number to 24 times per day, providing some breathing room for operators. Nevertheless, this is still well below the 2022 average of 34-40 times per day. The most significant decrease comes from bulk and liquefied petroleum gas industries, allowing container ships to increase their daily transport.

Heaney wrote, "In practice, container ships find it easier to book slots as other segments (most notably bulk carriers) continue to vacate this route, even if shipping companies want more."

According to Drewry, the average transit frequencies of container ships were 7.7 and 7.6 times per day in the fiscal years 2022 and 2023, respectively. The fiscal year of the ACP runs from October to September.

In the current fiscal year, data for November and December shows that the daily transit rates for container ships are only slightly below the average at 7.4 per day, a decrease of 1 per day compared to the October average of 8.4 per day.

Before the Red Sea crisis, the Alliance had announced the redirection of three Asia-USEC routes. It is unclear whether these routes have been restored, but according to ONE, at least two USEC routes are currently using the Panama Canal.

Even so, due to the water depth restrictions of the locks, the actual number of containers transported may still be below optimal levels. The maximum draft of the new Panamax locks in Panama is 13.40 meters, lower than the pre-drought conditions of 15.25 meters, while the maximum draft for Panamax locks is not restricted to 12 meters.

Drewry estimates that for container ships, "every foot (30 meters) of draft lost results in the loss of about 350 TEUs of capacity." For the largest container ships that can pass through the new Panamax locks, this could reduce the effective payload by about 2,000 TEUs.

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