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The Panama Canal closed its fiscal year 2021 (FY21) with a record-breaking annual tonnage of 516.7 million Panama Canal tons (PC/UMS), coming in 8.7% higher compared to the 2020 fiscal year (FY20) and 10% above tonnage registered in FY19, the waterway’s last pre-pandemic fiscal year…
…Fiscal year 2021 was marked by unprecedented supply chain challenges caused by the continued impact of the COVID-19 pandemic. Related disruptions drove container rates to rise exponentially and production to slow down across various sectors, due to raw material shortages. Amid this landscape, the Panama Canal saw traffic grow between October 1, 2020 and September 30, 2021, driven by liquefied natural gas (LNG), liquefied petroleum gas (LPG), containerships, dry bulkers, and vehicle carriers…
…Containerships registered 184.3 million PC/UMS tons through the Panama Canal this year, a 2% increase from tonnage compared to FY20, followed by dry bulk (90 million PC/UMS tons), chemical carriers (65 million PC/UMS tons), LNG (61 million PC/UMS tons) and LPG (52.8 million PC/UMS tons).
LNG carriers registered a 31.4% increase in tonnage through the Panama Canal, representing the largest gain across all segments. LNG also set new annual records for total tonnage and transits, in addition to monthly tonnage and transit records in January 2021, fueled by record winter temperatures in Asia. More LNG terminals located in in the Gulf Coast and the East Coast of the U.S. expanded their operations, spurring an increase in exports shipped to Asia…
…LPG and vehicle carriers followed LNG in segment growth, closing FY21 with an 18.4% and 15.6% increase in tonnage through the waterway, respectively...
…The main trade routes using the Panama Canal by tonnage in FY21 included the U.S. East Coast – Asia, followed by the U.S. East Coast – West Coast of South America, West Coast of South America – Europe, South America Intercoastal, and the East Coast South America – Asia route, the latter of which replaced the East Coast U.S. – West Coast of Central America route in the Canal’s top five routes. South Korea also moved up the ranks to become the fourth top user of the waterway this year, preceded by the United States, China, and Japan, with Chile coming in fifth.
All in all, the Panama Canal recorded a total of 13,342 transits in FY21, driven by an increase in Neopanamax transits. Though their average size increased, Panamax transits declined in total, an anticipated shift accelerated by the impact of the COVID-19 pandemic, as shipping lines consolidated more cargo onto larger ships to decrease frequent transits. To help facilitate this transition, the Panama Canal increased the maximum allowable length (LOA) for vessels transiting the Neopanamax Locks, a move made possible by the waterway’s experience operating the Expanded Canal. The waterway also began offering a 50-foot draft, the highest level allowed at the Neopanamax Locks. Achieved through effective water management and an increase in rainfall, the higher draft ultimately increased the waterway’s capacity to maneuver larger and heavier vessels.
The Panama Canal also advanced its commitments to accelerating the decarbonization of shipping in FY21. In January 2021, the Panama Canal announced the creation of the CO2 Emissions Dashboard, which calculates the carbon dioxide (CO2) emissions saved by vessels that choose to transit the Panama Canal over the most likely alternative route. Building on these and other longstanding efforts, the waterway then committed in April 2021 to becoming carbon neutral by 2030, with plans already underway to invest roughly $2.4 billion in modernizing its equipment and infrastructure to meet this commitment. The Canal will also spend $2.8 billion in maintenance, as well as $500 million in digital transformation initiatives to maximize its capacity and value offered to customers for years to come.
The Panama Canal is working on its roadmap outlining the specific steps it will take to reach carbon neutrality by 2030, from generating electricity from renewable sources to migrating the Canal’s fleet to electric vehicles and hybrid tugboats. The Canal will also explore a pricing strategy that promotes the efficiency and low-carbon emissions of the ships that transit the waterway, as well as participate in the upcoming 2021 United Nations Climate Change Conference (COP26) and IMO Marine Environment Protection Committee (MEPC77) meetings…
(For information about operations in Panama, contact GAC Panama at [email protected])
Source: Extracts from Panama Canal Authority press release dated 29 October 2021