The Panama Canal could further reduce the maximum number of authorized daily vessel transits if this year's drought continues, the waterway's administrator said on Tuesday.
A backlog of ships is waiting to pass through the trans-oceanic canal, which handles an estimated 5% of world trade. It began restricting vessel draft and daily passage authorizations this year to conserve water.
Many vessels have had to lighten cargoes before passing, and freight costs have risen ahead of the Christmas shopping season.
Up to 32 ships are currently authorized to transit every day, down from 36 ships in normal conditions. Maximum vessel draft has been limited to 44 feet, down from 50 feet.
To ease the bottleneck, the canal recently changed its reservation system to allow more non-booked vessels to pass and to prioritize ships waiting the longest.
As of Tuesday, 116 vessels were waiting to pass in Panama, down from over 160 in early August. The maximum wait time was 14 days, down from 21 days a month ago, according to official data.
Panama Canal Faces Prolonged Drought, May Further Restrict Ship Transits
The Panama Canal anticipates that extreme drought conditions will persist into next year, continuing to hinder the passage of vessels through the crucial interoceanic waterway. According to Panama Canal Administrator Ricaurte Vásquez, the ongoing drought is due to the El Niño weather pattern, resulting in lower water levels in the canal’s feeding lakes.
Vásquez indicated that if conditions do not improve, they may consider further reducing the number of ship transits through the canal. The canal administration believes it can maintain the current reduced level of operations throughout the remainder of the year.
In July, the canal already limited the daily number of vessel transits from 36 to 32 to conserve the water necessary for operation. The primary concern is to keep water levels sufficient for vessels with a draft of 44 feet, allowing 70% of the canal’s customers to use it. Others may be required to reduce their cargo loads to navigate the waterway.
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