Panama Canal Reports 9.5% Profit Increase in FY24

The Panama Canal reported a 9.5% increase in profit for the fiscal year ending September 2024, totaling $3.45 billion, despite significant drought conditions that constrained vessel transits. The canal's revenue rose to $4.99 billion, aided by a 5% reduction in operational costs and strategic financial management, including the implementation of a Freshwater Surcharge and water-saving measures. Adverse weather led to a 21% drop in deep-draft transits, which totaled 9,944 for FY24, prompting the canal authority to adjust ship passage limits and draft sizes. However, these restrictions were lifted later in 2024 as water levels normalized. The canal's management is also focusing on infrastructure improvements and incentives to attract essential vessels back to the route, alongside a $1.6 billion dam project to mitigate future climate challenges. Overall, the canal's financial resilience reflects effective operational strategies amid ongoing environmental pressures.