Panama Canal Deputy Administrator Ilya Espino recently told the media that he does not expect further vessel transit restrictions until at least April 2024.
He added that the authority plans to evaluate water levels at the end of the dry season to determine if further measures are needed.
Container vessels' transits improve
During the month of January, daily transits for all vessel types averaged around 22, a considerable drop from the daily average in January 2023 (36 vessels).
This goes to show that the impact of the drought was clearly visible last year.
In a recent advisory, the Canal said the convergence of heightened temperatures in the Atlantic Ocean and the El Nino weather phenomenon delayed the rainy season. Rainfall in October fell over 40% short of expectations.
However, towards the end of 2023, Panama witnessed improved rainfall. This helped retract the Canal's decision to gradually reduce vessel transits to a low of 18 in February 2024. The current daily slots are 24 per day, which is still considered relatively low compared to previous figures.
The statistics published by the Canal for the months of November and December 2023 and January 2024 show steady progress for container ships passing the waterway.
Despite the relative improvement, container ships continue to face delays. If more restrictions are introduced during the dry season, longer delays are possible.
According to seaexplorer data, the number of container vessels waiting to transit the Canal on the morning of 19 February is 23. Some of these vessels have been waiting for several days.
For example, MSC Mirella R has been waiting on the southern side of the Canal since 15 February, while Maersk Willemstadt has been waiting on the northern part since 16 February.
Water levels "record low" at Gatun Lake since 1965
Improvement, or otherwise, will remain in the hands of weather conditions. Nevertheless, analysts in the shipping industry are painting somewhat of a grim outlook for 2024.
A Freight Waves analysis claims water levels will continue to be a challenge and could "derail vessel throughput."
The water level at Gatun Lake started this year exceptionally low, analysts explain. At the beginning of February, it stood at 81.2 feet (24.75 metres) - the lowest level on record since 1965.
This figure is forecast to drop in the next few months to below 80 feet (24.38 metres) in early April.
Planning shipments in advance is key
Bulk carriers and tankers are among the most impacted vessel types by the drought.
The primary advantage that mitigates the impact on boxships lies in the liners' ability to secure advance booking slots for transit through the Canal.
For importers and exporters, meticulous planning of shipments and supply chains, including provisions for potential delays, remains a critical element.
Kuehne+Nagel seaexplorer provides you with multiple options to plan your shipments and be well-prepared for the upcoming season. You can also reach out to your Kuehne+Nagel representative for further information.
