The Panama Canal closes fiscal year 2021 with a tonnage record

Plan important investments by 2030

The Panama Canal also advanced its commitments to accelerate the decarbonization of shipping in fiscal year 2021.

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The Panama Canal closed its fiscal year 2021 with a record annual volume of 516.7 million CP/UMS tons (Universal Measurement System for Ships), an increase of 8.7% compared to fiscal year 2020 and 10% above the tonnage recorded in 2019, the last fiscal year before the pandemic.

 

“I am grateful and proud of our world-class workforce whose resilience and dedication allowed us, throughout the pandemic, to maintain service excellence and facilitate the uninterrupted delivery of essential goods around the world,” he said. the administrator of the Panama Canal Ricaurte Vásquez Morales.

 

Fiscal Year 2021 Performance

 

Fiscal year 2021 was marked by unprecedented supply chain challenges caused by the ongoing impact of the Covid-19 pandemic . Related disruptions led to exponential increases in container rates and a slowdown in production across several sectors due to raw material shortages.

 

Amid this scenario, Panama Canal traffic increased between October 1, 2020 and September 30, 2021 , driven by the liquefied natural gas (LNG), liquefied petroleum gas (LPG), container ships, bulk carriers and vehicle carriers segments.

 

Container ships continue to reflect a surge in demand for finished consumer products as increased purchasing during the pandemic disrupted supply chains and congested ports around the world.

 

The container ship segment recorded 184.3 million CP/UMS tons, an increase of 2% in tonnage compared to fiscal year 2020, followed by bulk carriers (90 million CP/UMS tons), chemical tankers (65 million CP/UMS tons UMS), LNG (61 million CP/UMS tons) and LPG (52.8 million CP/UMS tons.

 

Despite supply chain disruptions, LNG vessels increased 31.4% in tonnage through the Panama Canal, representing the largest increase among all segments.

 

LNG also set records for total tonnage and transits, both annually and in January 2021, due to record-low winter temperatures in Asia . More LNG terminals located in the Gulf and on the US East Coast expanded their operations, leading to an increase in exports shipped to Asia.

 

LPG vessels and vehicle carriers followed the growing LNG segment, closing fiscal year 2021 with an increase of 18.4% and 15.6% in tonnage through the interoceanic waterway, respectively.

 

Although vehicle carriers saw growth in fiscal 2021, they have not yet fully recovered from the traffic decline caused by the pandemic, similar to passenger ships, which are expected to continue their gradual return to the interoceanic waterway in the year. fiscal 2022. Its return will be supported by proposals to modify the segment's tolls, which are expected to be approved in the coming weeks.

 

The Panama Canal's top trade routes by tonnage in fiscal year 2021 included: US East Coast – Asia , followed by US East Coast – South America West Coast, South America West Coast – Europe, the South America Intercoastal route , and South America East Coast – Asia , which replaced the US East Coast – Central America West Coast route in the Canal's top five routes.

 

South Korea also climbed in the rankings to become the fourth largest user of the interoceanic waterway this year, preceded by the United States, China and Japan , with Chile in fifth place.

 

The Panama Canal recorded a total of 13,342 transits in fiscal year 2021, driven by an increase in Neopanamax vessels . Although their average size increased, Panamax transits decreased, a change anticipated and accelerated by the impact of the Covid-19 pandemic as shipping lines consolidated their cargo onto larger vessels to reduce the frequency of transits.

 

Looking to the future: ensuring a sustainable future

 

The Panama Canal also made progress on its commitments to accelerate the decarbonization of maritime transport in fiscal year 2021.

 

In January 2021, the Panama Canal announced the creation of the CO2 Emissions Dashboard, which calculates the carbon dioxide (CO2) emissions saved by ships that choose to transit the interoceanic waterway over the most probable alternative route. The Canal committed in April 2021 to becoming carbon neutral by 2030, with plans already underway to invest approximately $2.4 billion in modernizing its equipment and infrastructure to meet this goal.

 

The Canal will also invest $2 billion in maintenance, and $800 million in digital transformation to maximize its capacity and value offered to customers in the coming years.

 

In the coming weeks, the interoceanic waterway will unveil its roadmap for the next decade, outlining the steps it will take to achieve carbon neutrality by 2030, from generating electricity through renewable sources to migrating its fleet to electric vehicles and hybrid tugs.