Panama Canal Update: Navigating Challenges Ahead

In the latest on the Panama Canal situation, a low-water crisis is impacting daily vessel transits, with no quick fix in sight. Efforts to address the issue, including a proposed $2 billion investment in new facilities, face potential approval delays from the Panamanian government. Water-saving measures are being considered, but a resolution is uncertain.

The prolonged drought, intensified by ocean warming, has led to reduced vessel transits and an estimated $200 million loss in canal revenue. The Panama Canal Authority has indicated that the number of transits will see additional limitations, progressively decreasing in the upcoming weeks and reaching a maximum of 18 by February 1, should the low rainfall persist. Nationwide strikes in Panama are further complicating matters, disrupting terminal operations.

As carriers reassess the canal’s long-term viability, we will continue to provide updates on this evolving situation.

If you have any questions, please contact your local Noatum Logistics representative.