Panama Canal Reduces Number of Daily Ship Crossings Again Due To Severe Drought

The Panama Canal Authority (ACP) revealed plans to substantially decrease the number of ships that pass through the canal each day. This move will impact international maritime trade and shipping expenses.

The implementation comes as the water levels in Gatun Lake, an essential reservoir that helps ships navigate the canal’s lock system, continue to fall to deficient levels.

ACP has continuously taken measures to conserve the reservoir by reducing vessel draft and daily passage authorisations.

According to reports, the slots would be further decreased for three months, indicating a 43% reduction in capacity.

The primary target of these reductions are LNG and LPG carriers along with large container ships.

The severe drought that Panama is currently facing is the driving force behind this decision.

Due to the delayed onset of the rainy season and insufficient rainfall in the Canal watershed, the ACP had to take these measures.

The ongoing scenario of the Panama Canal has resulted in significant delays as vessels are in the queue to pass through the canal.

The US Energy Information Administration analyst note emphasises that these delays have resulted in a global increase in shipping rates due to a decrease in available vessels.

The cost of shipping liquefied gas has increased, putting financial strain on gas transporters.

Reference- Yahoo Finance

Panama Canal Reduces Number of Daily Ship Crossings Again Due To Severe Drought appeared first on Marine Insight – The Maritime Industry Guide

Source: Maritime Shipping News