Panama Canal transit restrictions due to low water will increase congestion for carriers and shippers.
The brief
The Panama Canal is experiencing worsening congestion. This is partly due to potential low-water restrictions, which will impact vessel draught. Carriers will likely face reduced capacity or require rerouting, adding transit time and cost for trans-Pacific and South America routes.
Takeaway
Shippers should review existing contracts for Panama Canal contingencies and consider alternative routing options, such as intermodal rail across North America or Suez Canal routes for Asia-US East Coast movements, accounting for lead time and cost impacts.
Read the original at gCaptain
https://gcaptain.com/panama-canal-draught-restrictions-set-to-add-to-congestion-chaos/