Panama Canal will extend the temporary relief measures it earlier implemented for its customers to the remainder of the year in an effort to support the industry's recovery as the coronavirus pandemic continues to impact the global economy.
The relief measures — which included the suspension of advance payments for transit reservation fees and other changes to the waterway’s reservation system — was implemented on May 4 and is originally intended to run until September 1.
The Panama Canal Authority earlier said the temporary relief measures are aimed to help prop up customers' liquidity and provide flexibility for swapping booking slots within its own fleet.
Encouraging signs of recovery
“I am encouraged by the growth we are seeing for the container segment, though we are tracking changes in global trade flows vigilantly,” said Deputy Administrator Ilya Espino de Marotta.
“The extension of these measures underscores our commitment first and foremost to our customers.”
According to figures released by the Panama Canal Authority, transits at the waterway increased from 845 in June to 933 in July, and August is showing a similar trend. They said the increase was largely driven by a surge in containership transits along the US East Coast to Asia route.
"Despite the challenges faced earlier this year, I am confident we will see a steady recovery going into our 2021 Fiscal Year for both the Canal and its customers,” said Panama Canal Administrator Ricaurte Vásquez Morales.
The waterway’s fiscal year will end on September 30.
Meanwhile, the Panama Canal has also been experiencing declines in traffic due to blank sailings from shippers and as cruise businesses remain on hold.
The waterway saw a decline in transits since the start of 2020. January saw transits dropping from 1,283 to 1,226 in February and 1,210 in March. The biggest drop came in April when the traffic level fell to just over 1,000 transits, prompting the Canal Authority to introduce the current relief measures for shippers.