Panama Canal Faces Worst-Ever Drought!

The global maritime artery, the Panama Canal, is undergoing an unprecedented drought of historical proportions since records began in 1950. This drought not only has significantly reduced the transit capacity of the canal, but has also led to increasingly severe delays for container ships passing through the Panama Canal.


Data reveals that in the first week of August, each vessel experienced an average delay of 15 to 19 days in the Panama Canal.

Due to this unparalleled drought, the Panama Canal Authority has reduced the maximum draft depth of its new Panamax locks by approximately 2 meters and decreased the maximum daily transit of vessels by 20%. Starting from July 30, the number of vessels passing through the canal daily has been lowered from 36-38 to 32.

To cope with this situation, major shipping company Dafeng Shipping has announced additional charges for the Panama Canal, known as the Panama Canal Charge (PCC), starting from June 1 and September 1 respectively. The charge per container has increased by $300.

The severe drought has compelled the Panama Canal to implement shipping restrictions. These measures not only require container ships to lighten their loads and pay higher fees to transit the Panama Canal, but also anticipate a further rise in transportation costs and potential delays for goods passing through the canal this summer.

Post time: Aug-14-2023