Panama Canal Congestion September 2023

Last month, the wait time for non-booked vessels at the Panama Canal increased by 44% to 59% due to a prolonged drought. The canal authority imposed restrictions earlier this year to conserve water, allowing only 32 vessels with a draft of up to 44 feet to pass each day. This has caused bottlenecks, increased freight tariffs, and forced some vessels to divert. In August, the average waiting time for southbound transit was 8.85 days, while for northbound passage it was 9.44 days. The measures are expected to continue for the next 10 months. Despite recent rainfall, it has not been enough to raise water levels in the canal or alleviate the drought.

The insightful video provided by the Wall Street Journal explores the critical considerations that must be taken into account for future expansion and changes in the Panama Canal. It emphasises the need to strike a delicate balance between human and animal dependency, as well as the preservation of the nearby rainforests. Additionally, it highlights the canal's commitment to being an environmentally responsible solution, minimising the global carbon footprint.

https://www.wsj.com/video/series/in-depth-features/how-the-panama-canals-drought-is-threatening-global-supply-chains/789384B7-9FDF-48FE-92EC-88895BF570FC

Update 6 September:

Starting from September 3, 2023, Booking Condition 1A is in effect with a limit of 32 vessels per day. Container vessels are still preferred during the 2nd and 3rd booking periods. However, with condition 1A, the Canal's capacity to accommodate non-booked vessels will be reduced, potentially increasing the backlog. Canal traffic will be high during the Christmas season, which may impact waiting times. Water levels are expected to remain low for months due to reduced rainfall and El Nino. As of September 4, there are 112 vessels waiting at the Canal entrances, affecting supply chains.

https://gcaptain.com/panama-canal-wait-times-surged-in-august/

https://www.seatrade-maritime.com/panama/panama-canal-changes-booking-conditions