Delays Being Incurred At Panama Canal

Delays of up to 15 days are currently being experienced at the Panama Canal, due to the persistently low water levels caused by an ongoing drought in Central America.

The extreme drought conditions have been hampering operations since May. Rainfall between January and April brought the lowest water levels in two decades and while we have entered what is traditionally the rainy season, the situation has not improved.

Since June, carriers have been applying surcharges for containers moving through the canal, and this month the permitted daily transits have been reduced by around 20%.

The Panama Canal Authority (ACP), have suggested that the reduced capacity restrictions could stay in place until September next year, describing the current conditions as ‘unusually severe’.

Delays for Panama Canal crossings are mostly impacting North and South American West Coast services to and from the UK, as well as Asian services to and from the US East Coast.

The seriousness of operational problems was highlighted recently, when the vessel Ever Max arrived at the Pacific Ocean entrance. 1,400 containers had to be removed and moved by rail to the other end of the waterway for the ship to collect on its exit into the Atlantic Ocean.

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