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🛳️ In the news: The Panama Canal, recovering from drought, anticipates full capacity by early 2025, easing ship restrictions and restoring normal operations. Canal de Panamá seems to be returning to its pre-drought condition, but the Panama Canal Authority (PCA) anticipates it may not fully regain capacity until early 2025. The prolonged drought had disrupted passage schedules, leading to severe restrictions for ships traversing the canal connecting the Atlantic and Pacific Oceans for over a year 📰 Read more on this story on WorldCargo News: https://lnkd.in/d7FbTeNT #IntermodalEvents #Shipping #Container #Trade #Panama

In February, Mercator International addressed a client’s concerns regarding the long-term viability of the Panama Canal for shipments from Asia to the US East Coast. At the time, Gatun Lake's water levels were the lowest in over 20 years due to an El Niño-induced drought. The last El Niño in 2019 also caused significant declines in Gatun Lake levels, followed by a recovery in 2020 once El Niño ended. In February, NOAA projected a 79% chance of El Niño ending by June 2024, which proved to be accurate. Based on historical patterns and NOAA's projections, we advised our client that Gatun Lake levels would likely normalize by the end of 2024. NOAA has officially announced that the 2023 El Niño has come to an end. As shown in the chart below, water levels are mirroring the recovery patterns from 2020. We remain confident that Gatun Lake levels will return to normal throughout the rest of the year. https://lnkd.in/eGr3U5h4 #PanamaCanal #GatunLake #GlobalTrade #Shipping #Logistics #Sustainability #ClimateChange #MaritimeIndustry #SupplyChain

Drought chokes the Panama Canal From The Economist Travelling between the Atlantic and Pacific Oceans is becoming trickier. The Panama Canal Authority (ACP), the body which runs the waterway, has recently been cutting the number of daily crossings. On Friday the figure will drop from 24 to 22. That is less than 60% of capacity. The cuts are driven by the need to save water, which powers the canal’s 12 locks. Panama’s worst drought in 70 years means that reservoirs feeding the canal are running dry. Ships with a pre-booked slot face extended waits; those without a booking risk “indefinite delays”, warns the ACP. Alternative routes are long and costly, so many vessels are choosing to wait. Some are paying huge sums to skip the queue. (One company paid nearly $4m on top of the standard transit fees of around $400,000.) There is little prospect of getting the canal moving at full capacity again: Panama’s dry season is approaching and the ACP has scheduled more transit cuts.

This is a continuing maritime security or marsec update from Sanborn Analytics. On December 15th, 2023, the Panama Canal Authority announced an upcoming increase in its daily ship allowances from 22 to 24, effective January. This adjustment is attributed to unexpectedly favorable November rains, providing relief to the canal, which has struggled with drought for several months. The region has experienced diminished rainfall due to a potent El Niño, causing a decline in the canal's water levels. This circumstance has compelled shippers to make challenging decisions, such as enduring lengthy wait times, opting to expedite their passage by paying substantial sums or taking the extensive route around the southern tips of Africa and South America to circumvent the canal. All reporting credit goes to G Captain and Reuters(see link) #maritimesecurity #panamacanal https://lnkd.in/e9qifUMv

Possible end of drought and normal Panama Canal operations by 2025:  The Panama Canal Authority (ACP) anticipates increasing vessel traffic as Panama's dry season nears its end. After experiencing historically low water levels in Gatun Lake due to drought, the ACP plans to move towards normalizing operations as indicated by their action last month as they allocated three additional transit slots for Panamax vessels, totaling 27 per day. Recent rainfall has replenished the lake, boosting canal traffic, which is currently at 60% of 2022 levels. While the ACP remains cautious, it expects ..... (see more at Parsifal News page: https://lnkd.in/gN5E-mk)

𝗣𝗮𝗻𝗮𝗺𝗮 𝗖𝗮𝗻𝗮𝗹 𝗿𝗲𝘃𝗲𝗿𝘁𝘀 𝘁𝗼 𝗽𝗿𝗲-𝗱𝗿𝗼𝘂𝗴𝗵𝘁 𝗿𝗲𝗴𝗶𝗺𝗲 The Panama Canal, impacted by a prolonged drought, is gradually returning to normalcy, with full capacity expected to resume by early 2025, according to the Panama Canal Authority (PCA). The drought had led to severe ship restrictions, affecting passage schedules and causing delays and costs for shipping companies. Recent rainfall has partially alleviated the situation, prompting the PCA to increase booking slots in the locks and adjust draft allowances for vessels. As a result, shipping giant Maersk, which had explored alternative transport options, plans to revert to using the canal as water levels stabilize with the onset of the rainy season. Read more: https://shorturl.at/JPQ09 . . . #panamacanal #globalshipping #motionsupplychain #projectcargo #cargo #projectmanagement #supplychainmanagement #globallogistics #vision2030 #saudivision2030

Critical Panama Canal Constraints: Panama to Limit Daily Ship Transits to 18 Amid Drought Crisis. The Panama Canal Authority announces a significant reduction in daily ship transits to 18 starting February 1, 2024, due to unprecedented low water levels in Gatun Lake. The drastic measure aims to ensure canal operation and maintain a 44-foot draft in the new locks essential for container ships. The decision follows the lowest October rainfall since 1950, with a forecast of 38% less rain in the coming weeks, exacerbating the existing drought. Currently, 96 ships face delays of six to nine days, emphasizing the impact on global trade routes. More ships will have to choose Suez Canal as an alternative. This will shift more traffic toward US East Coast. https://lnkd.in/eCkR6jkZ CMA CGM #PanamaCanal #ShippingNews #elniño #shippingwatch #suezcanal #USEC #crisis #opportunity

Will the Panama Canal dry up? "Water levels in Gatun Lake, the rainfall-fed reservoir that is the main source of water used in the canal's lock system, have "continued to decline to unprecedented levels for this time of year,"" Large lakes and reservoirs are drying up all over the globe: Great Salt Lake, Lake Powell, Lake Mead, Lake Titicaca, Caspian Sea, many more ... #climatechange #watersupply #droughts

To Save the Panama Canal From Drought, a Disruptive Fix https://ift.tt/FipQ1sK Ricaurte Vásquez Morales is a man obsessed with water. An app on his phone displays the fluctuating level of Lake Gatún, the artificial reservoir that is the centerpiece of the Panama Canal system. He checks it constantly, the way a gambling addict monitors football scores. He keeps a vigilant eye on the weather. “I love a rainy day,” he said. Mr. Vásquez Morales is the administrator of the Panama Canal, which is both the economic heart of his isthmus nation and a central artery for global trade. More than half the container cargo moving between Asia and the East Coast of the United States passes through the shortcut notched into the Central American jungle — the connector between the Atlantic and Pacific oceans. Last year, a drought dropped the lake to critical levels, prompting canal authorities to limit traffic. At the worst point, in December, only 22 ships a day were allowed to pass through the canal, down from the usual 36 to 38. More than 160 ships were stuck at anchor at both ends. Rains that began in May have allowed the lifting of most restrictions, and 35 ships a day on average have made the journey in recent weeks. But canal authorities know that this is merely a respite in a new era influenced by climate change and frequent periods of El Niño, when ocean temperatures rise and rainfall decreases. They are consumed with expanding water storage. Business News via NYT > Business https://ift.tt/KQNhUL9 August 13, 2024 at 09:07PM

This article dives into what it might take in expense and time, to save the Panama Canal after the unpreceded drought conditions continue. #Shipping #PanamaCanal #weather #drought #ShippingIndustry #SupplyChain