Panama Canal chokepoint eases with rainy season arrival in May
Posted on April 15, 2024 |
Signs indicate the Panama Canal's chokepoint may alleviate soon with anticipated rainfall, hinting at normalized shipping routes.
A prolonged 11-month drought, worsened by El Niño, led to increased toll fees and long queues, prompting many ships to seek alternative routes.
Security concerns in the Suez Canal, exacerbated by Yemen's Houthis targeting merchant ships, added to shipping challenges.
The Panama Canal's management, ACP, responded by adding three extra daily slots at Panamax locks, signaling progress amid adversity.
Maersk, a prominent liner, reinstated services previously diverted during the drought, indicating improving water levels.
Despite accounting for 2.5% of global trade, restrictions on Panama Canal transits have caused a one-third reduction in tonnage transits.
Although improvements are noted, the current queue for transit stands at 46 ships, down from over 160 recorded at the peak in August.
