Transit Restrictions in Panama Canal Stretch to September 2

The Panama Canal Authority informed shippers on Wednesday that it would be extending the limitations on vessel transit through the waterway through September 2 and would be capping the number of vessels that could pass through each day at 32.

The latest Canal limitations, put in place because Panama’s rainy season arrived later than usual this year, may increase pressure on consumer goods prices because delays and additional taxes raise the cost of transportation.

Moving consumer goods from Asia to the United States via the Panama Canal is crucial, especially before major shopping holidays like Christmas. Also, it enables the quicker delivery of US goods to Asia and the Pacific Coast of South America.

In total, 131 ships with and without reservations were waiting to transit on Wednesday, which is fewer than the 161 ships reported a week earlier, according to official data.

The canal authority provided extra slots last week for unbooked vessels, which led to the congestion easing.

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Impact of Drought on Vessel Transit and Canal Regulations

The maximum draft for vessels under the present regulations is 44 feet (13.41 meters). The Canal permits 10 daily transits for the new, larger locks and up to 14 bookings per day for the older, smaller locks.

The remaining eight passage slots each day are available to vessels that arrive without a reservation.

Through September 2nd, the Canal is continuing to halt exceptional auctions for transit spaces in both locks.

During this time of year, a total of 36 vessels are permitted to traverse the Canal per day under normal circumstances, but a protracted drought has necessitated limits on the use of the navigation channel and the locks.

According to ACP data, the typical wait time for unscheduled transits through the Panama Canal has doubled from six days in July to 12 days this month.

40% of containers traveling from Northeast Asia to the East Coast of the United States pass through the Panama Canal.

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Source: Reuters