Update: 25.08.2023
An official from the Panama Canal said on Thursday, August 25, that the measures taken to restrict the number of vessels transiting the canal and the maximum draft of these vessels could continue for at least 10 more months.
According to a Reuters report, the Canal's Deputy Minister, Ilya Espino, advised vessel owners to book slots in advance in order to avoid delays. Reuters cited the official as saying, "We are currently seeing an increase in arrivals. It is peak season as December is approaching, so merchandise for Christmas is moving quickly."
In addition to the restrictions in place, vessels are allowed transit based on specific priorities. An advisory published by the canal earlier in July announced that "full container vessels shall have priority in the assignment of slots over other vessel types." A measure that prompted bulk carriers and vessels carrying coal to divert their route away from the waterway.
Data from the Panama Canal Authority showed that over 130 ships were waiting at the canal on August 23, reports Splash247. The report adds that this is nearly 45% above average for the canal at this time of year.
Update: 17.08.2023
The Panama Canal issued an advisory yesterday, August 16, announcing the extension of the condition it imposed to alleviate the backlog of vessels. According to the advisory, Booking Condition 3 for the Panamax Locks will be extended until Saturday, September 2.
In addition, the canal is extending the suspension of the extraordinary auctions in the Panamax Locks to the same date. Earlier in July, the canal's authority had reduced the number of vessels allowed to transit its waterway to 32 vessels per day.
Original article: 14.08.2023
Last week, the Panama Canal Authority introduced a new booking condition to tackle the build-up of vessels waiting to transit, specifically those without a slot booking.
"We informed our customers that effective August 8, a new Booking Condition, namely Condition 3, came into effect for the utilization of the Panamax locks," stated the canal authority.
"It's important to note that the standard offering of reservations comprises 23 booking slots for these locks. Under Condition 2, in scenarios involving a substantial reduction in capacity (such as lane closures for maintenance), the allocation is reduced to 16 booking slots. Meanwhile, under Condition 3, as currently being implemented, the booking slots are limited to 14 in total (comprising 10 slots for super-sized vessels and 4 slots for regular-sized vessels). To this day, reservations for the Neopanamax locks remain unaffected."
This in effect means the number of bookable slots have been reduced to accommodate those ships that have arrived or are en route without a booking. This slot adjustment will remain in effect until August 21.
As per the Panama Canal's vessel statistics and transit backlog report, there are currently 137 vessels of all types in the queue today, with an average waiting time of around 15 days. The number of "non-booked" vessels waiting for the Panamax locks is currently 78, accounting for more than half of the ships waiting. At the Neopanamax locks, the situation seems less critical, with just 9 unannounced ships waiting.
The congestion at the canal's entrances is due to the long period of drought in the area, reducing the water available in the canal for the safe passage of ships. In response, the Panama Canal Authority has reduced and will maintain the maximum draft for transit to 44 feet or 13,41 meters. It has also reduced the number of transits allowed to 32 per day, down from 36 under normal conditions. These restrictions have forced ships to wait longer outside the interoceanic highway connecting the Atlantic and Pacific oceans.
