Panama Canal toll revenue drops

Time: 2024-01-24 09:06:42    Hits: 2361

Reuters has reported that the Panama Canal’s toll revenues have

dropped by roughly $100 million since October 2023, month-on-month

(MoM).

Panama Canal toll revenue drops

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.

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.

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