'This is going to get worse before it gets better': Panama Canal pileup due to drought reaches 154 vessels
Publishing timestamp: 2023-08-10 06:27:40
Summary
The Panama Canal Authority has reduced the number of ships allowed to pre-book transit through the Panamax locks due to ongoing drought conditions. As a result, there are currently 154 commercial vessels waiting to cross the canal, with an average wait time of 21 days. This congestion is causing delays and disruptions in the shipping industry, particularly for U.S. shippers. The reduced capacity and water conservation measures implemented by the Panama Canal Authority have led to a backlog of ships waiting to cross. This situation is expected to worsen before it improves, and it may result in higher costs for businesses and consumers. Some shippers are already considering alternative routes, such as transiting the Suez Canal. The delays and restrictions are also impacting the energy sector, with clean tankers and coal traffic being affected.
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Keywords: china, cheniere energy inc, panama canal, droughts, panama, transportation and shipping, united states, business news, energy, environment, shipping, savannah,
Source: https://www.cnbc.com/2023/08/09/panama-canal-shipping-pileup-due-to-drought-reaches-154-vessels.html