Severe Drought in Panama Reduces Ship Crossings and Increases Shipping Costs

Due to a severe drought, the Panama Canal will be reducing the number of daily ship crossings, causing shipping costs to increase. The Panama Canal Authority (ACP) announced that booking slots will be reduced from 31 per day to 25 starting on November 3rd. Over the next three months, the slots will be gradually reduced even further to 18 per day starting in February. Water levels in Lake Gatun, the main rain-fed reservoir that navigates ships through the canal, have reached record lows due to the lowest rainfall on record since 1950. The drought is attributed, in part, to the El Nino climate pattern and delays at the canal have caused shipping rates to rise worldwide, impacting the transportation of liquefied natural gas in particular.

The drought in Panama has led to a reduction in ship crossings through the Panama Canal, resulting in increased shipping costs. Starting on November 3rd, the number of booking slots available per day will be reduced from 31 to 25, with further reductions planned over the next three months. This is due to record-low water levels in Lake Gatun, the reservoir that helps ships pass through the canal’s lock system. The ACP has implemented various measures, such as limiting ship drafts and daily transit permits, to conserve water. The drought is partly caused by the El Nino climate pattern, which has resulted in below-average rainfall. Delays at the canal have had a global impact on shipping rates, particularly for the transportation of liquefied natural gas.

The Panama Canal Authority (ACP) has announced that the severe drought in Panama will lead to a reduction in daily ship crossings through the canal. Starting from November 3rd, the number of booking slots will be reduced to 25 per day, and this will gradually decrease to 18 per day by February. Water levels in Lake Gatun, the main reservoir that helps maneuver ships through the canal, have reached unprecedented lows due to record-low rainfall. The drought is attributed to the El Nino climate pattern, which has caused below-average rainfall. To conserve water, the ACP has already implemented measures like limiting ship drafts and transit permits. The delays at the canal have had a significant impact on shipping rates worldwide, with the transportation of liquefied natural gas being particularly affected.

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