Nasionalberita.com – The latest news from America reports that the Panama Canal is experiencing a severe drought. This has had a major impact on the smooth transportation of export-import vessels that pass through this vital route.
It is recorded that hundreds of ships are waiting their turn to pass through the Panama Canal, as seen in satellite pictures showing the inevitable traffic jams.
The Panama Canal Authority (PAC) has reduced the number of time slots for ship passage, in response to the drought that has been going on since late July.
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Every ship that crosses this canal drains about 50 million gallons of water. However, the situation has worsened because Lake Gatun, the water source for the canal, has reached its lowest water level in four years. Now, the average wait time to pass through the canal is about 21 days, longer than before.
“On Panamax vessels, the largest vessel type with a capacity of approximately 4,500 units of 20-foot equivalent (TEU), the time slot was reduced from 23 days to just 14 days,” explained PAC.
The drought conditions also prompted PAC to ask ships to reduce their cargo by as much as 40%. The Ever Max ship, for example, was forced to unload as many as 1,400 containers at Balboa Harbor to meet this requirement and be able to pass.
“Containers that are still lagging behind may have to wait for other ships to continue their journey,” said Captain Adil Ashiq of MarineTraffic North America.
The situation is expected to worsen further before finally improving, according to Captain Adil.
The impact of the drought on the Panama Canal has prompted businesses to seek alternative routes. However, this means additional time and fuel costs for their journey.
“These additional costs will likely be passed on to businesses and eventually consumers,” said Alan Baer, CEO of OL USA, referring to the potential increase in the price of goods.
Alan Baer also confirmed that freight forwarders are currently looking for other routes. “With it becoming increasingly difficult to reach the US East Coast via the Panama Canal, importers may be looking at transit options via the Suez Canal in Egypt,” Baer said.
He also added that this solution might be effective for shipping goods from the South China region and beyond. However, for North China and North Asia, the transit option via the Suez Canal will increase the travel time by around seven to 14 days.
Within the energy sector, a shift has also been seen. Increasing delays led ships carrying crude oil to avoid the Panama Canal in favor of the Atlantic route.
Data from the Commodities at Sea unit showed a 12% decline in net oil product exports from the Gulf Coast using the Panama Canal in July, compared to the previous year. Even Cheniere Energy announced that same month that it would be avoiding the Panama Canal for LNG shipments due to increased waiting times.
In fact, the Panama Canal is usually the fastest route for LNG supplies to Asian markets. Coal traffic is also changing.
Please note that approximately 73% of US export-import commodities are represented by total containers passing through the Panama Canal. About 40% of US containers annually pass through this channel, with a cargo value of US$270 billion.
Previously, the drought that hit Germany had resulted in the shrinking and silting of the Rhine River, which is a vital route for transportation and logistics. It has also disrupted the delivery of goods.
The Rhine, which is 1,230 km long, is the main commercial route used to ship 80% of goods to the interior of Germany. Commodities such as crude oil and natural gas are often shipped via this waterway.
