The Panama Canal maintains its transit level as other sectors leave the container industry

The Panama Canal has been facing a decline in transit trips due to the worst drought in decades, leading to draft and daily transit restrictions to maintain water levels. While there was a 25% decrease in transits in December 2023 compared to October 2023, container ships have managed to maintain transit levels, largely due to reduced competition from other sectors. Despite the increase in daily transits to 24, it still poses a challenge for container ships.

The Panama Canal Authority (ACP) has been implementing measures to manage the waterway, with a significant decrease in transits compared to the previous year. However, container ships have managed to avoid long lines and expensive transit auctions through a pre-reservation system. Despite the challenges, the share of container ships in total monthly transits rose to 30.6% in December, indicating their ability to navigate the restrictions more effectively than other sectors.

The situation remains uncertain, with the possibility of further draft restrictions being announced at any time. However, it appears that the Panama Canal bottleneck is proving to be less restrictive for container ships, as they are finding it easier to reserve slots compared to other sectors, according to shipping advice from Drewry.

Source .