Recently, the situation at the Panama Canal has improved as there are fewer ships waiting to pass through. This improvement is due to the Panama Canal Authority allowing more ships that didn’t have prior reservations to use the canal. Some ships are also choosing different routes to avoid the delays caused by the drought-related restrictions.
To alleviate congestion, the Panama Canal Authority decided to open up two extra slots each day for ships without reservations. However, they are still limiting the total number of ships passing through to a maximum of 32 per day, compared to the usual 36 in normal conditions.
Ship recycling: trends and challenges in the next 10 years
The Panama Canal has been dealing with a significant drought, which has led to slowdowns in shipping. To manage this, they’ve implemented various restrictions, including reducing the amount of cargo ships can carry and limiting the number of crossings.
As of Tuesday, there were 125 ships, both with reservations and without, waiting to pass through the canal. This is a decrease from over 160 ships two weeks ago. Additionally, 40 ships were approaching the canal, down from 50 two weeks ago.
The authorities have extended a booking condition to help manage the situation. This allows ships that haven’t made reservations but are already in transit or waiting in line to pass through the canal in a reasonable amount of time.
India’s pricing situation continues to be underwhelming : Best Oasis
Unfortunately, the average waiting time for ships to pass through has increased to around 10 to 11 days this month, up from 6 to 7 days last month. Cargo vessels and gas carriers have even longer wait times, with cargo vessels waiting over 17 days and gas carriers waiting almost 13 days.
These delays have caused tensions among neighboring countries. Colombia’s President Gustavo Petro expressed concerns about how the drought is affecting Panama, while Mexico’s President Andres Manuel Lopez Obrador suggested the idea of creating a new water corridor in his country.
Despite some recent rain in Panama, the maximum draft allowed for ships passing through the canal remains restricted to 44 feet (13.4 meters). This limitation affects the size of ships that can use the canal, including container ships, bulk carriers, and tankers.
As a result of the delays, draft restrictions, and increased freight costs, more ships are seeking alternative routes to avoid the Panama Canal. This is impacting the movement of goods between different parts of the world.
Abe Eshkenazi, the CEO of the Association for Supply Chain Management based in Chicago, mentioned that if the disruptions continue for an extended period, shippers might start looking for alternative routes to transport their products.
