The Panama Canal generated a record $4.986 billion in revenue last fiscal year, despite a reduction in ship transits due to a drought, the shipping route announced Friday. The Panama Route “presented preliminary financial results for fiscal year 2024, showing total revenue of $4.986 billion,” the Panama Canal Authority said in a statement.

Revenue from the canal, whose fiscal year runs from October 1 to September 30, comes from tolls, electricity sales and maritime services. Revenue increased by 1% compared to the previous year, although the growth rate slowed compared to previous years.

The canal spends about half of its revenue on operations and maintenance, while the rest of the funds go to the Panamanian treasury. This historic turnover was achieved despite a decrease in ship transits and cargo tonnage on the Panama route over the last year due to drought.

Transits fell by 20% (from 14,080 ships to 11,240), while cargo fell by 17% (from 511 million tonnes to 423 million tonnes). The drop in transits is due to measures implemented by the Panama Canal Authority at the end of 2023 to address water shortages.

Unlike the Suez Canal, the Panama Canal operates on fresh water from two artificial lakes, the levels of which have seen a significant drop due to low rainfall. THE lack of rain forced the canal authority to reduce the daily passage of ships from 38 to 22, although the situation began to normalize with the arrival of the rainy season in May.

The increase in revenue is attributed to new tolls and auctions for preferential crossing slots along the 80km route linking the Pacific to the Caribbean. The main users of this route are the United States, China, Japan, South Korea and Chile, and it accounts for 5% of global maritime trade.