Due to receding water levels, restrictions will be implemented this week in the Panama Canal because of draught limitation affecting one of the world's most vital maritime passageways.
According to a report from Singapore this morning, prescription levels have plummeted by 50% compared to recent averages between February and April.
As a result, the Panama Canal Authority has been compelled to enforce two draught restriction measures.
The first measure will be implemented this Wednesday, followed by another next Monday.
It is possible that additional restrictions will be imposed, as meteorologists have cautioned that water depths in Lake Gatun, situated in the heart of the canal, may reach historically low levels by July.
Commencing on May 24, neo-Panamax vessels will have their allowable draughts reduced to a maximum of 13.56 metres, down from the already limited 13.72m.
The following week, this limit will be further reduced to 13.41m.
In effect, it means some box ships will have to carry 40% less freight when travelling through the canal connecting the Pacific with the Caribbean.
In response to these restrictions, several major shipping companies have announced surcharges.
As a result, shippers are now exploring alternative routes to the waterway through the Panamanian isthmus.
Since the canal’s expansion seven years ago, the shipping industry has grappled with similar drought episodes, often witnessing the emergence of tree stumps surfacing from Lake Gatun.
However, this year's dry spell is even more concerning due to meteorologists predicting the imminent arrival of El Niño, a weather pattern that typically results in drier-than-normal conditions across a significant portion of Central America. – SOURCE: Splash 247.
