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.