Maersk constructing ‘land bridge’ to bypass Panama Canal during drought

Maersk has announced plans to change its OC1 service route through the Panama Canal due to ongoing water shortages that have prompted transit restrictions. The Panama Canal Authority has reduced daily transits and maximum vessel drafts, leading to congestion and high queue-jumping fees. To minimize disruption, Maersk will now use a “land bridge” across Panama for its OC1 service, allowing rail transport instead of using the canal.

This change will result in two separate loops, with Pacific ships turning around in Balboa, Panama, and Atlantic ships turning around in Manzanillo. There are currently no delays for northbound ships, but southbound ships may experience delays. Cartagena will also be omitted from the route. Maersk will continue to operate the PANZ service from the US West Coast to Oceania and establish connections between Gulf ports and the OC1 service.

Maersk is working to minimize the impact on supply chains and remains in close contact with the Panama Canal Authority to provide updates to customers. This innovative strategy highlights the ways in which airlines are adjusting their routes to mitigate disruptions caused by the ongoing drought and transit restrictions in the Panama Canal.

Source .