On February 11, Reuters reported that the Panama Canal, the world's second busiest waterway, experienced a decrease in the number of passing vessels to an average of 32.6 per day, totaling 1,011 ships in January. This drop marks the first month-on-month decline in nearly a year, as per an announcement from the canal's governing body.
After facing passage restrictions due to a severe drought between late 2023 and early 2024, the canal witnessed a notable uptick in transits throughout 2024, culminating in 1,059 ships passing through in December, according to data from the Panama Canal Authority. Despite this recovery, 36 passage slots have remained unfilled since September, possibly due to toll increases that prompted some shippers to opt for longer routes to Asia.
In February of the previous year, the total number of transits fell to 662 ships from 702 in January. However, traffic surged by almost 60% from February onwards until the end of the year.
Recently, U.S. Secretary of State Marco Rubio visited Panama City and engaged with top canal officials concerning tolls and the presence of Chinese enterprises near the waterway—a matter that some politicians and officials from Washington have flagged as a security concern.
During the fiscal year ending in September, the canal's toll revenue decreased by 5% to $3.18 billion due to the drought. In contrast, toll revenue had seen substantial growth of nearly 26% between 2020 and 2023, reaching $3.35 billion, as highlighted in the canal's annual reports.
In the aftermath of Rubio's visit, discussions between the U.S. and Panama governments ensued regarding tolls for U.S. military vessels, which hold priority passage through the canal according to a 1977 agreement made when the U.S. pledged to return control of the canal to Panama.
Panamanian President Jose Mulino disputed Washington's claim that U.S. military vessels could traverse the canal without payment, accusing the U.S. of spreading "lies and falsehoods."
These events have exacerbated tensions between the two countries following reported progress in military collaboration and joint strategies concerning China's expanding presence in Panama.