Panama Canal Reports No Surge In Traffic Despite Red Sea Attacks

According to a recent update from the Panama Canal Authority, there has been little of an increase in canal traffic as a result of the ongoing strikes in the Red Sea by the Houthi group of Yemen, which have forced some vessels to reroute. Notably, vessel traffic concerning the Red Sea issue has remained relatively high in the Panama Canal, even though the Suez Canal, which handles around 12% of world trade, has been disrupted.

The Panama Canal Authority stated that they have not observed any notable increase in the number of vessels because of the ongoing Red Sea situation. The canal authorities modified their plans earlier this month in reaction to possible difficulties brought on by the war in the Red Sea and the effects of an extreme drought. Instead of cutting the number of permitted daily transits to just 20, it has been increased to 24.

The authority emphasised its dedication to carefully monitoring the nation’s water circumstances, stressing that it relies on weather to replenish the locks, enabling transit. It was said in the announcement that any more changes to the ban will depend on how the rain falls in the coming months.

The Houthi rebels, who say they are reacting against Israel’s operations in Gaza, are attacking ships that are traversing the Bab al-Mandab Strait, which is the source of the Red Sea war. Due to the difficulties caused by this circumstance, several vessel owners are considering taking another route, possibly through the Panama Canal.

By the end of the year, Hapag-Lloyd of Germany intends to reroute 25 ships. The decision was impacted by the rise in shipping stocks and freight costs brought on by the continuous disruptions in the Suez Canal.

The canal administrator is expected to continue to be vigilant in evaluating the changing water conditions and modifying transit limits as necessary.

Reference: MarineLink

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Source: Maritime Shipping News