Americas News
Shipping Continues to Feel Panama Canal Squeeze
Bulk grain shippers hauling crops from the US Gulf Coast export hub to Asia are sailing longer routes and paying higher freight costs to avoid vessel congestion and record-high transit fees in the drought-hit Panama Canal.
The congestion at one of the world's main maritime trade routes comes at the peak season for US crop exports, according to Reuters.
Ships moving crops have faced wait times of up to three weeks to pass through the canal as container vessels and others that sail on more regular schedules are scooping up the few transit slots available.
The restrictions could continue to impede grain shipments well into 2024 when the region's wet season may begin to recharge reservoirs and normalise shipping in April or May, the report said.
Clarksons Research has reported a steady drop in the usual vessel transits at the Panama Canal on the back of passage restrictions.
The canal authorities are reacting proactively to the situation -- water from one dock, for example, can be used to fill another, an action known as cross-filling. Nevertheless, booking slots continue to fall across the coming months with a restriction of 18 per day in place from February 1, according to the Panama Canal Authority.
