Further Restrictions in Panama Canal Announced
During Q2 2023, the Panama Canal Authority announced it would reduce draft from 14.94 meters to 13.41 meters. Despite several measures to conserve water taken over the previous months, lack of precipitation in the area is affecting the water level of the Panama Canal. Consequently, the Panama Canal Authority has recently confirmed further restrictions regarding the number of vessels crossing the canal. Many steamship lines have also announced delays, restrictions and surcharges.
Tuesday, November 21, 2023
CMA CGM informs its customers that the Panama Canal continues to suffer from severe drought, consequently, the Panama Canal Authority has recently announced further restrictions.
During Q2 2023, and despite several water conservation measures, the canal draft was reduced from 14.94 to 13.41m.
The lack of precipitation over the summer months has forced the Panama Canal Authorities to reduce the number of vessels transiting per day. As a consequence, by January 1st 2024, the booking windows for transiting the Neopanamax locks will be reduced by -30%.
These restrictions combined with an increase in the Canal Tariff implemented earlier in the year, are taking a severe toll on CMA CGM’s operations.
PANAMA CANAL SURCHARGE
MSC CUSTOMER ADVISORY
Geneva, Switzerland, 23 November 2023
During Q2 2023, the Panama Canal Authority decided to reduce draft from 14.94 to 13.41. Despite several measures to conserve water taken over the last months, lack of precipitation in the area is affecting the water level of the Panama Canal. Consequently, the Panama Canal Authority has recently confirmed further restrictions regarding the number of vessels crossing the canal.
These restrictions, combined with the increase of the Canal Tariff implemented earlier this year, are having a direct impact on overall MSC operations costs.
Transpacific Eastbound: Panama Canal Adjustment Factor
23rd November 2023
Dear ZIM Customer,
The Panama Canal Authority has recently announced further restrictions on vessels crossing the canal, following the historically low water level in Panama.
The number of vessels passage the Neopanamax locks will be further reduced, combined with an increase of the Canal Tariff implemented earlier this year, increased our operation cost substantially. To recover the extra expenses on Asia to US East coast and US Gulf services crossing the Panama Canal, Zim will implement a new Panama Canal Adjustment Factor (PCA), starting December 15, 2023.
Here’s an update on the Panama Canal situation
In the face of the most severe drought the Panama Canal has experienced in half a century, we are working towards adjusting our operational outlook to support your cargo planning. The drought has had a serious impact on container ships by posing draft limits whereby space and weight allocations are challenged. In addition, the daily vessel transit has been capped to a specific number of vessels per day, presenting additional challenges to transit the Panama Canal on time.
Despite our preparations, the canal’s restrictions present uncertainties, and therefore, we are constantly evaluating the operational situation, including regular discussions with the authorities to obtain the latest information. In view of this situation, our teams are engaged in taking all the necessary measures to continue supporting your supply chain requirements.
ZIM Re-Routes Ships to Avoid Yemeni Coast
Mike Schuler, gcaptain.com
Israeli shipping line ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) says it will re-route vessels to avoid the Arabian and Red Seas amid threats to Israeli-linked ships in the region by the Yemen-based Houthi militant group.
The announcement comes after at least three ships have been targeted in the past week or so.
The company issued a statement Monday reiterating its continued commitment to serving the East Mediterranean and Israeli ports amid Israel’s war with Hamas.
“Operations to and from these ports will be maintained with the highest regard for safety protocols which are essential to safeguarding the interests of all stakeholders,” the company said.
However, the company said that in light of the threats, it is taking “temporary proactive measures” to ensure the safety of its crews, vessels, and customers’ cargo by re-routing some of its vessels, which will result in longer transit times.
“ZIM is closely monitoring the situation to address potential risks and ensure the ongoing safety and efficiency of its operations,” the statement said.
The announcement comes after a series of attacks on internationally-trading ships linked to Israeli businesses after Houthi’s leader threatened further attacks on Israel and Israeli ships in the Red Sea and Bab al-Mandab.
“Our eyes are open to constantly monitor and search for any Israeli ship in the Red Sea, especially in Bab al-Mandab, and near Yemeni regional waters,” Abdulmalik al-Houthi said in a broadcasted speech on November 14.
On November 19, the Galaxy Leader car carrier was hijacked by the Houthis and taken to Yemen’s Hodeidah port area along with its 25 crew members. The ship is still being held. Over the weekend, the chemical tanker Central Park was boarded by armed assailants in the Gulf of Aden, prompting a response from the U.S. Navy destroyer USS Mason. Five individuals now described as being of Somali nationality were captured in the incident, raising questions about the origin of the assailants. Following the rescue, two ballistic missiles were fired towards the Mason and Central Park, but the missiles landed in the water about 10 miles from the vessels.
In addition, on November 24 the Maltese-flagged M/V CMA CGM SYMI was reportedly attacked by an unmanned aerial vehicle (UAV) in the Indian Ocean, but did not sustain serious damage.
All three ships have links to Israel.
At least one ZIM ship, the MV ZIM Europe has been identified as re-rerouting down the west coast of Africa, presumably around the Cape of Good Hope, during a voyage from the U.S. East Coast to Port Klang, Malaysia.
Since Hamas’ brutal October 7 attack on Israel, U.S. Navy destroyers have shot down missiles and drones launched from Yemen on at least two other occasions.
ZXB – Vessel Diversion – Zim Savanah Voyage 20E – Updated
28th November 2023
Dear ZIM Customer,
Due to the ongoing restrictions in the Panama Canal and subsequent heavy delays, and in light of the threat to the safe transit of global trade in the Arabian and Red Seas, we wish to inform you that we have decided to divert the ZXB ZIM Savannah 20/E Voyage to sail via the Cape of Good Hope.
ZIM is taking temporary measures to ensure the safety of its crews, vessels, and customers’ cargo by rerouting some of its vessels. We make every effort to minimize disruptions and closely monitor the situation to ensure the ongoing safety and efficiency of operations.
Below is her tentative schedule for your reference:
- All cargo bound for Mexico will be discharged in Shanghai to connect alternative service.
A separate notification will be sent to cargo owners for further connection details.
We thank you for your understanding on this matter.