Panama Canal: Back to Business

Increased water levels in the Panama Canal have ignited hopes of a potential return to normal operations for container shipping following a year of restrictions due to severe drought.  However, while the situation may be improving, experts warn that the canal is far from returning to pre-restriction levels.

The Panama Canal Authority has increased the daily number of ships allowed, from 24 to 31.  The increase will provide limited relief for shipping services; however a more meaningful change is anticipated by June 1, with additional transit slots for larger ships, which will raise the daily total to 32.

The water shortage disruption had a significant impact on scheduling reliability and rates. 

As the Panama Canal slowly transitions towards normal operations, businesses need to be prepared for a slow recovery dependent on unpredictable factors, such as rainfall.  While hopes are high for a “normal” return, the reality may be different. 

It is becoming clear that the impact of the drought in the Panama Canal may be felt for years, rather than months.