After a period where positive industry updates have been scarce, its a refreshing shift for Westbound to be able to report some encouraging news. The Panama Canal is exhibiting signs of improvement marking a welcome change after facing constraints over the past year due to drought conditions.
The maximum number of daily vessel passages has been severely restricted since last April, which has been largely attributed to a lack of rainfall caused by the el-nino weather effect. Usually, 38 vessels can pass through the waterway every day, but the limit fell dramatically to just 20 in January.
However, in a positive turn of events, the region has witnessed plenty of rainfall just recently and the long-term forecast for the upcoming rainy season is optimistic. Therefore, the Panama Canal Authority have already upped the daily limit to 27 and have now confirmed it will rise to 31 daily vessel passages in May and 32 from June.
During the past twelve months, water levels in two artificial lakes that feed the canal have been extremely low, which has detrimentally impacted its operation since the lakes provide water that floats ships through its lock system.
While it could still be a few months before the canal returns to its normal operational capacity, the news is certainly positive for global shipping. The canal is the only channel through the continent for containerships and along with the conflict impacted Suez Canal, has become essential for round the world services.
And breathe…
If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.
