Panama Canal ship queue surges 13% in 24 hours amid drastic transit cuts

Posted on November 24, 2023   |  

Ship traffic through the Panama Canal grew by 13% due to transit cuts amidst a drought affecting 3% of global maritime trade.

Responding to the driest year, the Panama Canal Authority (ACP) trims daily transit volumes and issues draft restrictions, with each vessel requiring an average of 52 million gallons of freshwater for transit.

Recent announcements indicate significant transit reductions, lowering daily voyages to 18 by February from the usual maximum of 40.

As of November 10, the canal has a backlog of 112 ships waiting to transit, up from 99 the previous day, surpassing the seven-year average of 90 vessels.

Shippers and shipowners opt for alternative routes as container ships dominate limited available slots, anticipating potential congestion in the upcoming months.

Expected vessel diversions may contribute to inflationary effects on food and commodity prices, impacting neighboring countries of Panama.