{"id":30109,"date":"2020-10-13T11:58:16","date_gmt":"2020-10-13T16:58:16","guid":{"rendered":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=30109"},"modified":"2020-10-13T11:58:16","modified_gmt":"2020-10-13T16:58:16","slug":"panama-canal-closes-2020-fiscal-year-475-million-tons","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/panama-canal-closes-2020-fiscal-year-475-million-tons\/","title":{"rendered":"Panama Canal closes 2020 fiscal year with 475 million tons"},"content":{"rendered":"

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In a year of global pandemic and economic slowdown, Panama Canal secures uninterrupted service thanks to prompt water and health measures<\/p>\n

The Panama Canal closed its 2020 fiscal year with an annual tonnage of 475.1 million Panama Canal tons (PC\/UMS), thanks in part to the safe environment and uninterrupted service maintained for its clients and workforce, amid the global impact of the COVID-19 pandemic.<\/p>\n

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\u201cThe Canal\u2019s priority was to ensure the well-being of the nearly 10,000 men and women who make up our team and reaffirmed their commitment by adapting to the changes imposed by this pandemic in order to guarantee the continuous operation of the waterway,\u201d said Panama Canal Administrator Ricaurte V\u00e1squez Morales.<\/p>\n

The fiscal period that ran from October 1, 2019 to September 30, 2020, painted two different pictures for the Panama Canal, with a first semester that exceeded expectations, followed by another that saw a pandemic begin to disrupt lives and economies worldwide.<\/p>\n

The height of the pandemic\u2019s impact on the waterway occurred between May and July. Transits at the Panama Canal declined by 20% during this time, mainly due to reductions in passenger ships, vehicle carriers and liquefied natural gas (LNG) tankers. Transits and cargo movement, however, normalized in August and September, the last two months of the fiscal year, allowing the waterway to close with 475.1 million tons PC\/UMS.<\/p>\n

As a leading route for world trade, activity at the Panama Canal reflects that of the global economy, including estimates that the world may see a contraction of around 5% in 2020 as a result of the pandemic, with a greater fall of up to 8% in the United States, the main client of the Canal, based on projections by the International Monetary Fund.<\/p>\n

In the midst of this scenario, the Panama Canal ended its fiscal year with 13, 369 transits, a 2% reduction compared to projections, while the 475.1 million tons PC\/UMS represent a 4% drop, compared to projections. Compared to FY19, high-draft transits remained at very similar levels and total PC\/UMS tonnage grew by 1%.<\/p>\n

Continuous and Safe Service<\/b><\/p>\n

Implemented by the Canal early this year, COVID-related measures helped preserve the wellbeing of the Canal\u2019s workforce and mitigated the transmission of the virus, contributing to the operational activity as results registered in FY20.<\/p>\n

In March, for example, the waterway instituted heightened procedures, including a reduction of on-site staff to only those essential for continued transit operations. Similarly, another group of Canal workers went on vacation, while another group providing administrative support began working remotely.<\/p>\n

Market Behavior<\/b><\/p>\n

The 2020 fiscal year was marked by the U.S.-China trade war, tightening of environmental policies in the maritime industry and, of course, the pandemic, which continues to impact the world economy.<\/p>\n

Containerships remained the leading segment at the Panama Canal, registering 166.3 million tons PC\/UMS or 35% of the Canal\u2019s FY20 tonnage, followed by:<\/p>\n