9 May 2024 (Lloyd's List) - THE rebound at the Panama Canal continued in April, although there is still a long way to go to get back to pre-drought-restriction transit levels, and the pace of the recovery slowed versus March.
The waterway handled 789 vessels in April, up 6% versus March, according to newly released data by the Panama Canal Authority (ACP)*. Transits had risen 13% in March versus February.
Last month saw the highest level of total transits since October, the month immediately prior to severe transit restrictions imposed by the ACP in response to the drought.
April’s total transits were 19% above the nadir reached in February, albeit still 21% below October levels.
Despite the continued positive momentum, data on average transits per day shows just how far the Panama Canal has yet to climb.
While the ACP did not constrain transits via the larger, newer neopanamax locks until November, the numbers began falling at the older panamax locks in mid-2023.
There was an average of 7.4 neopanamax transits per day in April, down 22% year on year. There was an average of 18.9 transits of the panamax locks, down 28% year on year.
Neopanamax locks transits
April’s gain in total transits was primarily driven by ships at the panamax locks. Neopanamax transits increased only 2% in April versus March, a slowdown from the 8.5% rise in March versus February.
The main driver at the neopanamax locks last month was very large gas carriers in the liquefied petroleum gas shipping segment, with 72 transits, up 26% month on month. VLGC transits in April were down only 15% versus October (pre-restriction) levels.
VLGCs are increasingly using the Panama Canal for their laden US Gulf-Asia fronthaul runs, while continuing to use the Cape of Good Hope route for backhaul ballast legs.
Liquefied natural gas carrier transits via the neopanamax locks remained insignificant last month, with one transit versus three in March. LNG carrier transits in April were down 96% versus October. US LNG exports are either heading to Europe or using the Cape of Good Hope to Asia.
Transits by larger containerships held relatively steady, at 140 in April versus 146 in November. As with VLGC transits, neopanamax containership transits are down 15% versus October levels.
Panamax locks transits
Panamax transits in April rose 7% versus March, a pullback from the 14.5% sequential gain in March versus February.
Increases were driven by chemical tankers (13 more transits than in March), dry bulk (12 more) and general cargo (10 more).
That said, chemical tanker transits in April were still down by 31% versus October, dry bulk transits by 191%, and general cargo transits by 36%.
* The ACP does not release monthly transit statistics by segment. It releases fiscal year-to-date transits by segment since October, the beginning of its fiscal year. Lloyd’s List calculated monthly transits by comparing each month’s cumulative fiscal-year-to-date transit totals.
