The Panama Canal’s administrator is expecting a USD 200 mn revenue drop in the 2023-24 fiscal yearto USD 4.9 bn, due to water-saving crossing limits amid an unprecedented drought, Reuters reports. Disruptions are projected to have cost the canal a 16% decrease in cargo ship crossings. Reduced transit is also impacting commodity shipments, including coal, freight markets, LNG shipments, and bunker fuel deliveries, according to S&P Global.

REMEMBER- The Panama Canal Authority has announced a decrease in daily transit capacity to an average of 32 vessels, effective 30 July, for an "extended period of time” in order to conserve water amid a drought. Coal prices have fluctuated since this announcement, but are down y-o-y.

ALSO WORTH KNOWING-

  • Members of Canada’s International Longshore and Warehouse Union have voted to ratify a second tentative agreement with West Coast port ownership regarding wages, benefits, and training, effectively ending a long-standing dispute that has threatened supply chains. (Statement)
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