Given the ongoing water challenges in the Panama Canal and the impact on cargo movement, Maersk has announced plans to modify one of its services and operate a “land bridge” to move cargo across Panama and omit the waterway.
Based on current and projected water levels in Gatun Lake, the Panama Canal Authority (ACP) has reduced the number and weight of vessels that can pass through the Canal.
This move has seen shippers paying exorbitant fees to skip the queue amid warnings from the ACP that they will continue to impose water-restricting measures for at least 10 months due to the onset of the El Niño weather phenomenon.
The change will affect its OC1 service, operating between Oceania and the Americas. Vessels that previously utilised the Panama Canal will now omit the waterway and use a “land bridge” that utilises rail to transport cargo across the 80 km of Panama to the other side.
This creates two separate loops, one Atlantic and one Pacific.
Pacific vessels will turn at Balboa, Panama ciity, dropping off cargo heading for Latin America and North America and picking up cargo heading for Australia and New Zealand.
Atlantic vessels will turn at Puerto Manzanillo, Panama, dropping off cargo heading for Australia and New Zealand and picking up cargo heading for Latin and North America.