Panama City  - The Panama Canal Authority forecast a drop in cargo tonnage going through the waterway in the 2008-09 fiscal year as cargo transit was dragged down by the global recession.

In an analysis presented on Monday, the authority said this year's transit volume would be down 5 per cent to 294.1 million tons, 19.9 million tons less than in the previous fiscal year, which ended on September 20.

Last year, 14,702 ships passed the waterway, which links the Atlantic Ocean with the Pacific. The number was also down 12.9 per cent, as higher fuel costs and a weaker dollar affected shipping.

Toll revenues were up 11.3 per cent to 1.32 billion dollars. (dpa)