Fiscal year 2014 brought an increase in Panama Canal tonnage because of relative improvements in the economies of the United States, Europe and China toward the end of 2013 and early 2014.
Canal container ship traffic continues to be impacted by the maritime industry’s shift toward larger, more energy-efficient vessels that will be able to transit through the waterway once the expansion program is completed. Nevertheless, we saw strong grain cargo flows in Panamax vessels from the U.S. Gulf to Asia through the canal, thus offsetting the small decline in container vessels. Car carriers also showed improved performance from Asia and Mexico Pacific ports.
The world economy continued showing mixed results in 2014 and is poised to improve moderately in 2015, with a low probability of another substantial global economic slowdown in the near future. Forecasts point at a lower than expected global growth rate of around 3.1 to 3.2 percent for 2015, as a result of the still weak and unstable economic environment affecting Europe and the emerging markets. The economic recovery of the U.S. continues, but the slowdown in other countries poses more risks than gains. Further improvement will depend on several factors, including a decline in the unemployment rate in the U.S., a healthier financial system in China, and an improvement in economic growth rates in Asia and across emerging markets.
We see new challenges arising in 2015 for the maritime industry. In liner container shipping, in particular, we expect alliances to continue between major shipping groups in order to manage capacity. In addition, we anticipate that ports will press ahead with modernization and improvement projects geared toward handling larger vessels, while strengthening connectivity and speed of service inland. Such capacity enhancements must go hand-in-hand with increased productivity and the availability of a well-trained and stable labor force.
The Panama Canal Expansion Program continues to move forward, having surpassed 82 percent progress. In summary, we expect a more positive 2015 for global trade and the health of the shipping industry. Better supply-chain management strategies combined with optimized shipping routes that offer high connectivity to strong markets will help stabilize revenue over the long term.
Jorge Quijano, Administrator and CEO, Panama Canal Authority