5th draft adjustment, as drought costs canal $15 million

 The fifth draft adjustment for neopanamax vessels,  transiting the Panama Canal will kick in on April 30  creating estimated losses this year due to the low levels of Gatun and Alajuela lakes to $15 million..

With this measure, the draft of the ships, which is 50 feet, will be reduced to 45 feet, due to the lack of depth to travel safely. If there are no rains in the next few weeks another one-foot adjustment could be announced in May, said Carlos Vargas, vice president of Water and Environment of the Canal Authority ( ACP).

The draft adjustments have an economic impact on Canal revenues because ships are charged by tonnage and this measure forces vessels to carry less cargo . to float.

The draft of the ships, which is 50 feet, will be reduced to 45 feet, due to the lack of depth to transit.

There is also an impact on the service because customers tend to look for other alternatives,  said. Vargas

The draft settings represent a restriction to transport cargo through the Canal because the weight must be lowered to navigate. These measures could be avoided if there were sufficient water reserves to be able to navigate. One of the alternatives studied is the construction of a third reservoir, for which analysis is carried out.

Estimated losses
Since the beginning of the adjustment for the neopanamax, on February 11, to date, the Canal has lost nearly $ 15 million, because the ships must carry less cargo. The last  El Niño phenomenon, which affected the Canal between the end of 2015 and the beginning of 2016, produced $40 million in losses, the ACP reported.

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