Panama Canal to extend restrictions for ship transits

Posted on August 29, 2023   |  

The Panama Canal is set to extend restrictions on daily vessel transit and draft for around 10 more months due to an ongoing drought and decreasing water levels.

These limitations have led to a buildup of waiting vessels and prompted ship owners to lighten their cargo or seek alternative routes, resulting in increased freight expenses.

Extending the restrictions is aimed at conserving water until the next rainy season, but there's a concern that it could worsen congestion if ships don't reserve passage slots in advance.

To address the issue, the canal's authority recently opened additional passage slots for ships without reservations, reducing the backlog to 115 vessels from over 160.