Zehong International News: Due to the continuous drought in the Panama Canal, local shipping has to limit the number of ships passing through. According to CNBC, 154 ships have been waiting to pass on the Panama Canal, the world's shipping artery.
According to the data, in the first week of August, the average delay time per ship in the Panama Canal was as high as 15 to 19 days.
The "helpless restriction" of the Panama Canal
Zehong International understands that the drought is the worst in more than 70 years since 1950, and the canal's capacity is now almost exhausted. According to relevant data, since August 1, the number of daily anchors on the Atlantic side of the Panama Canal is about 56-76, and the number of daily anchors on the Pacific side of the Panama Canal is about 83-110, and the average waiting time has been extended from about 1 day to 3-4 days. It is understood that the normal operating draft of the Panama Canal is 15.24 meters, and the carrying capacity of large container ships will be 40% less than normal after the reduction. This has resulted in a serious backlog of ships on both sides of the canal.
At the same time, due to the ongoing drought, the Panama Canal Authority will continue to reduce the number of ship passages, and the draft will also be reduced, and the drought problem will not be alleviated in the short term, but may continue to worsen, and the measure will continue until the end of September 2024. The canal's annual revenue is expected to be reduced by at least about $200 million.
According to the Panamanian Transportation Authority's plan, the draft of the canal will remain at 13.41 meters for the next few months, which means that only 32 ships will be allowed to pass through each day.
The impact of the Panama Canal congestion
It is understood that there is currently a backlog of 129 ships in the Panamax lock, and 21 ships in the Neopanamax lock, causing delays of 17 and 20 days for ships from the Pacific to the Atlantic, and 16 and 19 days for ships on the return voyage.
It is understood that ships leading to the Panama Canal in the near future must pay high fees while carrying low-weight cargo, which means that the Panama Canal will not only have a serious decline in capacity, but also face delays in cargo.
In Zehong International's view, the continuous drought of the Panama Canal is very likely to trigger a butterfly effect, the water level continues to decline, and the capacity continues to decline, resulting in the fleet having to bypass the Suez Canal, resulting in a significant increase in logistics costs, and the recent freight market is bound to usher in a new market.