Panama Canal Transits Drop For First Time In A Year Due To High Tolls

Ship traffic through the Panama Canal fell in January, marking the first month-on-month decline in almost a year.

According to the Panama Canal Authority’s latest bulletin, an average of 32.6 vessels per day passed through the waterway, totalling 1,011 ships for the month. This was a decrease from December’s 1,059 transits.

The drop follows a recovery in 2024 after a severe drought between late 2023 and early 2024 that had led to restrictions on canal usage.

However, despite an increase in ship movements last year, demand was still not enough to fill all 36 transit slots available since September. Rising toll costs have forced shippers to opt for alternative, longer trade routes to Asia.

A similar decline occurred in early 2023 when transits fell from 702 ships in January to 662 in February. However, from that point, vessel traffic surged nearly 60% through the remainder of the year.

The decline in transit has impacted canal revenues. For the fiscal year ending in September, toll revenue dropped 5% to $3.18 billion due to drought-related restric…

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