Slowdown In Container Movement Hits Panamanian Ports

• From January to April 2023, the movement of TEU (twenty-foot equivalent unit) containers in the national port system fell 1.3%, compared to the same period in 2022, according to preliminary indicators from the Panama Maritime Authority (AMP).
• During the first quarter of 2023, the total volume of activity reached 2,647,686 TEU containers, compared to 2,681,578 in 2022, which is equivalent to 33,892 fewer movements so far this year.
• External factors, such as the loss of appetite for trade, are affecting activity. Cargo movement in metric tons decreased by 2.2%
• Additionally, the Russia-Ukraine war, inflation, and the loss of value of currencies against the US dollar are external factors that are affecting the movement of containers in the national port system.
• “At a global level, there is a marked slowdown in the movement of cargo. Many of us are buying less than last year, which is a representation of the global consumer. If you buy less, the stores that sell buy less; And if they buy less, they order less, and we see fewer containers. That is the variable”, commented the Vice President of Marketing and Corporate Affairs of Manzanillo International Terminal, Juan Carlos Croston.
• Panama is highly vulnerable to downtrends in global trade activity, as evidenced by the reliance on shipping-related and logistics service sectors. This makes the economy vulnerable to shocks to global shipping and trade, which could eat into economic growth.

(Source: Newsroom Panama & Fitch Solutions)