The Drop in Panama Canal Traffic Due to a Severe Drought Could Cost up to $700 Million

A severe drought that began last year has forced authorities to slash ship crossings by 36% in the Panama Canal, one of the world’s most important trade routes

Agustin Herrera

Agustin Herrera

A cargo ship waits near the Centennial Bridge for transit through the Panama Canal locks, in Panama City, Wednesday, Jan. 17, 2024. (AP Photo/Agustin Herrera)

PANAMA CITY (AP) — A severe drought that began last year has forced authorities to slash ship crossings by 36% in the Panama Canal, one of the world's most important trade routes.

The new cuts announced Wednesday by authorities in Panama are set to deal an even greater economic blow than previously expected.

Panama Canal Administrator Ricaurte Vásquez now estimates that dipping water levels could cost them between $500 million and $700 million in 2024, compared to previous estimates of $200 million.

One of the most severe droughts to ever hit the Central American nation has stirred chaos in the 50-mile (80-kilometer) maritime route, causing a traffic jam of vessels, casting doubts on the canal's reliability for international shipping and raising concerns about its affect on global trade.

“It’s vital that the country sends a message that we’re going to take this on and find a solution to this water problem,” Vásquez said.

The disruption of the major trade route between Asia and the United States comes at a precarious time. Attacks on commercial ships in the Red Sea by Yemen’s Houthi rebels have rerouted vessels away from the crucial corridor for consumer goods and energy supplies.

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A Maka Indigenous woman puts on make-up before protesting for the recovery of ancestral lands in Asuncion, Paraguay, Wednesday, Feb. 28, 2024. Leader Mateo Martinez has denounced that the Paraguayan state has built a bridge on their land in El Chaco's Bartolome de las Casas, Presidente Hayes department. (AP Photo/Jorge Saenz)

The combination is having far-reaching effects on global trade by delaying shipments and raising transport costs. Some companies had planned to reroute to the Red Sea — a key route between Asia and Europe — to avoid delays at the Panama Canal, analysts say.

Now, that’s no longer an option for most.

On Wednesday, Vásquez said the canal authorities would cut daily ship crossings to 24, down from 38 a day in normal times last year. Vásquez added that in the first quarter of the fiscal year the passageway saw 20% less cargo and 791 fewer ships than the same period the year before.

It was a “significant reduction” for Panama, Vásquez admitted. But he said that more “efficient” water management and a jump in rainfall in November have at least ensured that water levels are high enough for 24 ships to pass daily until the end of April, the start of the next rainy season.

Canal authorities attributed the drought to the El Niño weather phenomenon and climate change, and warned it was urgent for Panama to seek new water sources for both the canal's operations and human consumption. The same lakes that fill the canal also provide water for more than 50% of the country of more than 4 million people.

“The water problem is a national problem, not just of the Canal,” Vásquez said. “We have to address this issue across the entire country.”

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Drought Saps the Panama Canal, Disrupting Global Trade

The number of ships that can travel through the vital route has fallen sharply this year because of a lack of water for the locks, raising costs and slowing deliveries.

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By Peter Eavis

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  • Nov. 1, 2023

For over a century, the Panama Canal has provided a convenient way for ships to move between the Pacific and Atlantic Oceans, helping to speed up international trade.

But a drought has left the canal without enough water, which is used to raise and lower ships, forcing officials to slash the number of vessels they allow through. That has created expensive headaches for shipping companies and raised difficult questions about water use in Panama. The passage of one ship is estimated to consume as much water as half a million Panamanians use in one day.

“This is the worst we have seen in terms of disruption,” said Oystein Kalleklev, the chief executive of Avance Gas, which transports propane from the United States to Asia.

The problems at the Panama Canal, an engineering marvel that opened in 1914 and handles an estimated 5 percent of seaborne trade, is the latest example of how crucial parts of global supply chains can suddenly seize up. In 2021, one of the largest container ships ever built got stuck for days in the Suez Canal , choking off trade. And the huge demand for goods like surgical masks, home appliances and garden equipment during the pandemic strained supply chains to their breaking point .

An aerial shot of the Panama Canal.

In Panama, a lack of water has hampered canal operations in recent years , and some shipping experts say vessels may soon have to avoid the canal altogether if the problem gets worse. Fewer passages could deprive Panama’s government of tens of millions of dollars in annual revenue, push up the cost of shipping and increase greenhouse gas emissions when ships travel longer routes.

Though Panama has an equatorial climate that makes it one of the wettest countries, rainfall there has been 30 percent below average this year, causing water levels to plunge in the lakes that feed the canal and its mighty locks. The immediate cause is the El Niño climate phenomenon , which initially causes hotter and drier weather in Panama, but scientists believe that climate change may be prolonging dry spells and raising temperatures in the region.

Before the water problems, as many as 38 ships a day moved through the canal, which was built by the United States and remained under its control until 2000. The canal authority in July cut the average to 32 vessels, and this week announced new limits that are likely to lead to fewer than 30 passages a day. Further reductions could come if water levels remain low. The canal authority is also limiting how far a ship’s hull can go below the water, known as its draft, which significantly reduces the weight it can carry.

Container ships, which transport finished consumer goods, typically reserve passage well in advance, and have not faced long delays. But ships carrying bulk commodities generally don’t book passage.

This presents bulk shipping companies with an expensive calculus: They can risk waiting for days, pay a big fee to jump the line or avoid the canal entirely by taking a longer route.

Mr. Kalleklev, the shipping executive, said his company decided in August to pay $400,000 in a special auction to move a ship ahead in the queue, roughly doubling the total cost of using the canal. Other companies have paid over $2 million, a cost they will sometimes bear to ensure ships don’t miss their next assignment. A portion of these extra costs will be passed on to consumers, already pummeled by inflation.

The pain, however, has been limited because the U.S. economy is not running very hot and demand for imported goods is relatively muted.

“If this was a year ago, when we still had record high freight rates and consumers still spending a lot on containerized goods from the Far East, then you would see more drama than you have now,” said Peter Sand, chief analyst at Xeneta, a shipping market analytics company.

But traffic through the canal is likely to remain at lower levels in the coming months. Reducing passages helps conserve water, because huge amounts are used up every time a ship goes through the locks as it travels the 40 miles across Panama.

The drought also presents tough choices for Panama’s leaders, who must balance the water needs of the canal with those of residents, over half of whom rely on the same sources of water that feed the canal.

The canal’s board recently propose d building a new reservoir in the Indio River to bolster the water supply and increase traffic through the canal, which generates over 6 percent of Panama’s gross domestic product . Under the plan, the new water supply could allow for an additional 12 to 15 passages daily.

“In optimal terms, the canal can handle 38 transits per day, so 12 to 15 is a lot,” said Rodrigo Noriega, a lawyer and a columnist for Panama’s La Prensa newspaper.

Building the reservoir is expected to cost nearly $900 million, and the canal authority could start accepting bids from contractors toward the middle of next year with construction starting early in 2025. But that timeline could well be delayed; the construction of larger locks was completed two years late, in 2016, and that project was marred by cost disputes .

The new reservoir would also involve acquiring land that is protected by a 2006 law, and displace at least some of its inhabitants. Mr. Noriega said he expected Panama’s legislature to pass a law that would lift the ban on acquiring land. But he and others note that new water sources could also be built in other places.

Without a new water source, the canal could lose significant amounts of business. Other ocean routes are, of course, longer and more expensive, but they are less likely to have unpredictable delays. One alternative is to transport goods between Asia and United States through the Suez Canal to the East Coast and Gulf Coast. Another is to ship goods from Asia to the West Coast ports — and then transport them overland by train or truck.

“In theory, something that offers a cheaper, shorter route should always be in favor, but it’s the uncertainty that can be a killer,” said Chris Rogers, head of supply chain research at S&P Global Market Intelligence.

Protracted disruptions at the canal could stoke interest in building land routes in Mexico, Colombia and other countries that have coastlines on both oceans, said Richard Morales, a political economist who is running as an independent candidate for vice president in an election next year.

The efforts to secure new water supplies could be a race against climate change.

Because interest in building a canal dates to the 19th century, Panama has rainfall records going back some 140 years. That gives scientists more confidence when concluding that a weather change is a permanent shift and not merely random, said Steven Paton, a director of the Smithsonian Tropical Research Institute’s Physical Monitoring Program on an island in Lake Gatun, which makes up a large part of the canal and supplies most of its water.

He said that while scientists were unsure about climate change’s impact on El Niño, two of the driest El Niño periods of the last 140 years had occurred in the last quarter-century, and that the current one could be the third.

“It doesn’t say that this is climate change,” Mr. Paton said, “but it does say that this is wholly consistent with almost all of the climate change models.”

Sol Lauría contributed reporting from Panama.

Peter Eavis reports on business, financial markets, the economy and companies across different sectors. More about Peter Eavis

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A historic drought is causing a huge traffic jam at the Panama Canal

Ayesha Rascoe, photographed for NPR, 2 May 2022, in Washington DC. Photo by Mike Morgan for NPR.

Ayesha Rascoe

NPR's Ayesha Rascoe talks to Adil Ashiq from the maritime intelligence firm MarineTraffic {sic} about how a historic drought is causing huge delays at the Panama Canal.

AYESHA RASCOE, HOST:

The Panama Canal is one of the world's major trade routes, but currently it's experiencing a huge traffic jam with dozens of ships backed up in both the Atlantic and Pacific Oceans. The cause? An historic drought in Panama, which has reduced the canal's water levels. Joining us to discuss the potential impact on global trade is Adil Ashiq, head of the Americas for the maritime intelligence firm MarineTraffic. Welcome to the show.

ADIL ASHIQ: Thank you, Ayesha. Happy to be here.

RASCOE: So can you explain how the drought in Panama is causing these delays? I mean, I think I'm right in saying that the canal uses three times as much water as New York City every day. Is that correct?

ASHIQ: Yes, that is correct. And I think one of the biggest facts of the canal that people don't realize is that it is not actually fed by ocean water. It's, in fact, fed by fresh water that's collected through lots of the rainfall that was dammed when the canal was built. So Panama is notoriously very wet - one of the wettest countries in the world, actually. So this is very unprecedented, that the rainfall amount is not replenishing the lake, which is known as the Gatun Lake. And so the levels aren't sustaining the volume of ships traveling in and out.

RASCOE: OK. And so does that mean that some of the ships are being forced to offload some of their goods or to be lighter?

ASHIQ: Yeah, no, great question. So when ships go from ocean to ocean, they have to go through a tier of locks. And so these locks - they will rise because Panama Canal actually is above sea level. So once the vessel is at the level of the canal itself, this makes it a navigation concern for a vessel. To combat this, vessels technically need to be lighter so that their draft, basically the amount of ship that's underwater, doesn't run aground.

RASCOE: And I would imagine that's money, if you have to transport less goods than you otherwise would. Are there also delays?

ASHIQ: Yes, definitely. If ships are carrying less cargo, then that's less trade flowing through the canal. And in terms of the traffic, the jams, the delays that we're actually seeing at the canal for both the Pacific and Atlantic are actually about 30% more vessels waiting versus the average that we've seen in the past.

RASCOE: So what can authorities do in Panama other than just hope for rain?

ASHIQ: So they're building additional reservoirs. They're trying to understand ways that they can reuse water, looking at ways to dam other areas to have a backup supply in case these conditions can worsen in the future. And we have to think 20 years, 50 years, 100 years down the line.

RASCOE: Are shipping companies looking for different routes, since they're having issues with the Panama Canal?

ASHIQ: Absolutely. So in terms of the type of shipping, Ayesha - so if we look at the container trade - container vessels haven't really been impacted much by delays because they generally will get priority. However, in terms of bulk trade - so lots of raw materials that are used in manufacturing or say, gasoline - this market specifically is starting to see those types of delays. And sometimes these vessels are loaded so heavy that they simply cannot transit the canal, and they have no choice but to sail around South America.

RASCOE: That's Adil Ashiq from the maritime intelligence firm MarineTraffic. Thank you so much for being with us.

ASHIQ: Thank you, Ayesha.

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Ships on the Panama Canal.

Long delays at Panama Canal after drought hits global shipping route

Number of vessels able to pass through each day limited because lower availability of water

Commercial ships are facing long queues and delays to travel through the Panama Canal as a lengthy drought in the Central American country has led to a cut in the number of vessels able to pass through one of the world’s most important trading routes.

In a fresh demonstration of the impact of the climate crisis on global business and trade, the Panama Canal Authority (ACP), which manages the waterway, introduced restrictions on the number of transiting vessels as a result of the drought.

An extended dry season has reduced the availability of water, required to allow vessels to pass through the canal’s locks, which has triggered a logjam of ships awaiting their turn.

The canal is favoured by many shippers as it usually reduces cost and transit times, especially for large retailers and energy companies that trade between China and the rest of Asia, and the US.

The ACP has said it faces “unprecedented challenges”, adding that the severity of the drought had “no historical precedence”, even compared with the last drought in 2019-20.

In late July, the state-owned ACP limited the number of vessels passing through the waterway each day to an average of 32, down from the usual 36. It also restricted the permitted maximum depth of ships.

The restrictions led to a bottleneck of ships waiting for their turn to cross and sent companies scrambling to find alternative routes .

Live maritime tracking websites showed about 140 vessels near the canal on Monday, a considerable increase from the level of about 90 ships usually seen in the area during the rainy season, which lasts from May to December.

This was slightly lower than the 160 vessels seen close to the canal on Thursday, and could be a sign that measures to clear the backlog have been working.

Last week, the ACP announced it had temporarily changed its reservation rules to permit more ships without a booking to travel through the canal.

The measures, which will remain in place until 21 August, limit the number of new reservations for vessels passing through the canal’s older locks, used by smaller ships, to make more room for those waiting without reservations.

Ricaurte Vasquez Morales, the Panama Canal administrator, said: “Through regular updates, transparent dialogue, and close collaboration with shipping lines and stakeholders, we strive to manage expectations and provide real-time information that enables our customers to make informed decisions.”

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Weather-related problems have been building at the canal for some time, prompting the ACP to pledge to save water during the rainy months, although it said that the economic impact was unavoidable.

The return of the El Niño hot natural weather pattern is also making Panama and the surrounding region warmer and drier.

Peter Sand, the chief analyst at the freight market analytics firm Xeneta, said disruption at the canal could push short-term shipping rates higher and “prompt shippers to alter their supply chains”.

There are also concerns about the impact of dry weather on the Rhine in Germany , one of Europe’s key shipping routes. In recent months, the water level measured at Kaub, west of Frankfurt – a particularly narrow point where the navigable channel is shallower than elsewhere on the river – has been lower than usual and, in late July, fell to its lowest level of the year.

Analysts are fearful that a repeat of 2022 , when some larger vessels were forced to reduce their loads in order to continue using the river, could hit growth in Europe’s largest economy.

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Drought-hit Panama Canal must 'adapt or die' as water levels drop

by Francisco JARA

The canal relies on rainwater to move cargo ships through a series of locks that function like water elevators, raising the vess

The Panama Canal, an engineering wonder allowing ships to travel between two oceans, is seeking to adapt to climate change after a biting drought has seen traffic and income dry up.

The canal relies on rainwater to move ships through a series of locks that function like water elevators, raising the vessels up and over the continent between the Atlantic and Pacific Oceans.

However, a water shortage due to low rainfall has forced operators to restrict the number of vessels passing through, which is likely to result in a $200 million drop in earnings in 2024 compared to this year, canal administrator Ricaurte Vasquez said Thursday.

The Pacific warming phenomenon known as El Niño, which can cause drought in some nations and flooding in others, is making the situation worse, meteorologists say.

"The big disadvantage that the Panama Canal has as a maritime route, is that we operate with freshwater, while others use seawater," said Vasquez during a presentation to the media.

"We have to find other solutions to remain a relevant route for international trade. If we don't adapt, we are going to die."

The 50-mile (80-kilometer) byway moves some six percent of all global maritime commerce, and 2023 revenue is forecast at $4.9 billion, said Vasquez.

The canal opened in 1914 after a monumental construction project through dense jungles and mountains, with workers suffering tropical diseases , intense heat and rain.

Since then, more than a million vessels have transited through the canal, saving them a lengthy journey around the tip of South America.

The 50-mile (80-kilometer) interocean byway moves some six percent of all global maritime commerce, and 2023 revenue is forecast

'Unusually severe' crisis

Meteorologist Alcely Lau told AFP that the country has "observed considerable deficits" in rainfall this year, boosted by El Niño.

The drought has forced canal administrators to restrict the waterway to ships with a draft of 13,11 meters (43 feet)—which refers to how deep they sit in the water.

In 2022, an average of 40 ships crossed through the canal a day, a number which has now dropped to 32 to save water.

For each ship, 200 million liters of freshwater is used to move it through the locks before being dumped into the sea.

"This crisis is unusually severe," said Vasquez, adding that the "significant restrictions" would be in place until September next year.

Due to the draft restrictions, some merchant ships are forced to unload their containers and send the lighter vessel through the canal, while the goods traverse Panama by rail before being reloaded for shipping.

If the drought and resulting restrictions continue, Vasquez fears shipping companies will "opt for other routes."

In 2022, an average of 40 ships crossed through the canal a day, a number which has now dropped to 32 to save water

This includes the Strait of Magellan—a natural passage at the tip of South America between the mainland and the Tierra del Fuego archipelago.

"We think that if we find a solution relatively soon, not necessarily an immediate solution but one customers know is on the way, it should alleviate long-term concern," said Vasquez.

Saltier water going to cities

The lack of rain has also increased the salinity of the lakes and rivers that make up the canal 's watershed—which also provides water to three cities, including the capital Panama City.

"Every time we open the gate that leads to the sea, seawater is mixed with fresh water ," said Vasquez.

"We have to keep that level of salt water within a certain range, because the water treatment plants do not have desalination capacity," he added.

The dwindling freshwater cannot be replaced with sea water—as used by the Suez Canal which connects the Mediterranean with the Red Sea—as this would require massive excavations.

"Suez was much flatter and it was sand. In our case it is rock and there is a mountain range which is not very high, but it is there and it is a challenge," said Vasquez.

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Panama Canal is so backed up and ‘unreliable’ that ships are detouring thousands of miles to avoid costly delays

panama canal cruise problems

The Panama Canal has become so backlogged that the world’s largest operator of chemical tankers has decided to reroute its fleet to the Suez Canal.

London-based Stolt-Nielsen, which has a tanker division with 166 ships, is charging customers additional costs for the longer route, it said in an email. A  bottleneck  at the Panama Canal due to low water levels has prompted shippers to divert to Suez, the Cape of Good Hope, or even through the Strait of Magellan off the tip of South America.

“Stolt Tankers has found that the service through the Panama Canal has become increasingly unreliable in recent months,” the company said in an email. “Our customers need reassurance that their cargo will arrive on time to avoid negatively impacting their supply chains, therefore we have been rerouting our ships via the Suez Canal.” 

The Panama Canal Authority, which normally handles about 36 ships a day, announced on Oct. 30 that it will gradually reduce the number of vessels to 18 a day by Feb. 1 to conserve water heading into the dry season. Panama had the  driest October  on record due to a drought caused by the El Niño weather phenomenon, the authority said.

It’s unlikely that the canal will be able to increase traffic until the rainy season starts in mid-2024, according to experts. Some ships have had to wait as long as 20 days to get through the canal this year. Stolt said other shippers are “taking a similar approach” to deal with the backlog at the canal. 

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The Panama Canal Averts a Crisis for Now— But at a Cost to Drinking Water

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By Peter Millard, Michael McDonald and Eric Roston (Bloomberg) —

The Panama Canal has avoided the worst of a shipping crunch that threatened to upend the global economy — but at a cost to marine life and the Latin American country’s supplies of drinking water.

After imposing strict limits on vessel traffic last year as drought left water levels languishing, the Panama Canal Authority is increasing the number of ships that can cross. Thanks to conservation measures, water levels fell just over a foot for the year through March 12, compared with three feet during the same period of 2023.

Those measures, though, come with side effects. The canal recycles water from locks that vessels pass through, instead of simply flushing it into the ocean. This reused water gets saltier, and some of it infiltrates Lake Gatún, an artificial lake that forms part of the channel and is also Panama’s largest source of potable supply.

The Panama Canal’s challenges highlight how combating climate change carries inevitable tradeoffs.  As policymakers take action to limit the effects of global warming, there can be unintended consequences for the environment and the economy. And time is of the essence: Drought is already altering the world’s trade flows, creating  chokepoints  last year on the Mississippi River in the US and the  Rhine  in Europe. 

This year, Panama has had roughly two-thirds of its normal rainfall, said Fred Ogden, a former University of Wyoming civil engineering professor who has done extensive work in the country. Upgrades to the canal have made the situation worse, because new locks opened in 2016 to accommodate bigger ships require more water.

Climate change means “things are changing at a pace that is basically surprising everyone,” Ogden said. The canal expansion has “increased the likelihood of drought restrictions. When you throw a drought on top of that — oh my gosh. What a mess.”

The Panama Canal’s low water levels and efforts to conserve what’s left have made Lake Gatún more salty. Salinity is at the highest since 2020, when the Smithsonian Tropical Research Institute began collecting data, and still growing, said Steve Paton, the director of the institute’s physical monitoring program.

The lake’s salinity shot up after the new set of locks was inaugurated in 2016. Up until that point it was 0.05 parts per thousand, and with the increased trade flows it quickly rose and reached 0.35 parts per thousand four years ago. It’s now nearing that level again and will probably hit or surpass it before the rainy season starts, Paton said.

The canal authority’s chief hydrologist, Erick Córdoba, said during an interview in November that finding new sources of freshwater will be critical to ensuring Panama can meet growing demand from the population, shippers and local industry. One plan is to create a new reservoir at a river valley near Lake Gatún to supply additional water.  The canal is also looking to invest in more rainwater collection to help reduce salinity in the lake, he said.

Under normal circumstances, the Panama Canal handles about 3% of the world’s maritime trade volumes and 46% of containers moving from Northeast Asia to the US East Coast. Bottlenecks at the canal can ripple throughout the global economy, particularly as attacks by Houthis in the Red Sea add to shipping disruptions.

Last year, the El Niño weather pattern led to one of the driest years on record for the Panama Canal and forced it to slash transit. But El Niño is now fading, which means the rainy season should hit in late April or May, allowing the canal to ease shipping limits. The authority will allow 27 vessels a day to transit by late March, up from the current 24 but still well below the pre-drought capacity of 38.

“The forced reduction” in vessels “is having the desired effect of lowering total water consumption,” said Jorge Luis Quijano, a consultant and former chief executive officer of the canal authority. “However, it is difficult to predict if these favorable changes in weather will be enough to guarantee returning to 38 transits per day sometime later this year or next.” 

Quijano said the canal could possibly increase to 30 or 32 vessels a day after the dry season ends, and then progressively raise the limit further if rainfall is favorable. In a  statement  on March 11, the canal authority said it’s monitoring water levels and will announce any further changes in a timely manner. It didn’t respond to additional requests for comment. 

Other observers are more optimistic. Volumes could return to normal in three to five months, said Julia Junnan Zhao, principal data scientist at Dun and Bradstreet, a global data and analytics provider.

Any increase in vessels through the canal will come as a relief to shippers, some of whom paid  millions of dollars  to jump the queue while others took longer, costlier routes around Africa or South America.

In the meantime, the threats to drinking water and marine life remain. The canal authority’s strategy of recycling water could prompt marine species to start traveling between the Pacific and the Atlantic, disrupt coastal environments and even decimate fish stocks that communities along the Pacific and Caribbean rely on for food and tourism, Paton said. 

Lionfish are an example of what can go wrong with invasive species. They are suspected to have escaped from aquariums along the US East Coast during floods and storms, and now threaten native fish populations in the Gulf of Mexico and the Caribbean. A new saltwater corridor could wreak similar havoc on both sides of Panama.

Signs of that shift are already emerging. As rising salinity reduces the barrier between the oceans, researchers are seeing an increasing number of marine species in Lake Gatún, Paton said.

It’s an example of the risks policymakers are grappling with as they confront the impact of climate change on freshwater supplies. Drought plagued regions all over the world last year, including the Americas, Africa and the Mediterranean.

The parched conditions have “given a big wake-up call to a lot of people,” Ogden said. “The future does not look bright for the consistency of water resources that we’ve been able to rely on up until now.”

© 2024 Bloomberg L.P.

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Panama Canal to Increase Daily Transits in January

  • December 19, 2023

Princess ship in Panama Canal

The Panama Canal Authority (ACP) has announced that it will increase the number of daily transits to 24 starting in January.

Currently, 22 vessels transit daily, divided into 6 Neopanamax and 16 Panamax. This restriction is in response to the current state of Gatun Lake, which is experiencing unusually low water levels for this time of the year due to the drought induced by the El Niño phenomenon, according to the ACP.

October 2023 marked the driest October on record for the Canal Watershed. In anticipation of a potential worsening of the situation in November and December, the decision was made to adjust the number of daily transits to 22 in December, 20 in January, and 18 in February. This year marks the first time the Canal has ever had to restrict transits.

However, as rainfall and lake levels for November proved to be less adverse than expected, coupled with the positive outcomes from the Canal’s water-saving measures, the adjustments announced today will replace the previous advisory issued in October, the ACP stated.

Canal specialists are said to be closely monitoring the water level, and the measures announced today will go into effect January 16, 2024, and remain in effect until conditions warrant changes.

As 2023 is the second driest year in recorded history of the Panama Canal Watershed, the Canal has implemented an operational strategy focused on water conservation and transit reliability in the face of low rainfall and the consequent decrease in lake levels.

The Gatun and Alhajuela Canal Lake System stores water primarily intended for meeting the needs of the population and ensuring the smooth operation of the canal. Additionally, stored water is utilized for various purposes, including electricity generation and fostering the nation’s economic activities.

Water extracted from this system undergoes treatment to meet drinking water standards and is distributed to over 50 percent of the country’s population residing in the districts of Panama, San Miguelito, Arraijan, Chorrera, and Colon. Currently, eight water treatment plants extract water from Gatun Lake, with two more under construction. The Federico Guardia Conte water treatment plant, the largest in the country, draws water from Alhajuela Lake.

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panama canal cruise problems

Two Canals, Two Big Problems—One Global Shipping Mess

M ore than 50 ships queued to cross the Panama Canal on a recent day—from tankers hauling propane to cargo ships packed with food. A prolonged drought has led the canal’s operator to cut the number of crossings, resulting in longer waits. The tolls that ships pay are now around eight times more expensive than normal.

Over 7,000 miles away, vessels that move containers through Egypt’s Suez Canal are waiting for naval escorts or avoiding the passage altogether to take a much longer voyage around South Africa. Ship operators fear that their crews could be imperiled on the journeys through the Red Sea by missile or drone attacks from a Yemen-based rebel group.

The Suez’s problems are geopolitical and those in Panama are climate-based, but both are roiling global trade. Cargo volumes through the Suez and Panama canals have plunged by more than a third. Hundreds of vessels have diverted to longer routes, resulting in delivery delays, higher transportation costs and economic wreckage for local communities.

Ship operators are bracing for months of uncertainty in the waterways where some 18% of global trade volumes crossed last year.

The Panama Canal is in the midst of one of the driest periods in the artificial waterway’s century of operation. Officials hope the drought, which started in mid-2023, will let up at the end of the dry season in May.

In the Suez​, some ship operators have indefinitely suspended voyages because of strikes on commercial vessels further south. Houthis have attacked more than 50 ships since November​, including a cargo vessel loaded with fertilizer​ that sank into the Red Sea and another that resulted in three deaths.

Retaliatory strikes by an American-led coalition have destroyed roughly a third of Houthi military assets, according to a Pentagon official.

“It’s the first time that both are disrupted simultaneously so you have to plan way in advance where to send your ship and you pay a hell of a lot more regardless,” said Tim Hansen, chief operations officer of Stamford, Conn.-based Dorian LPG, which operates a fleet of 25 ships that move propane and butane.

The problems haven’t had a huge impact on consumers yet, but businesses are starting to feel the ripples. Tesla and Volvo paused vehicle production for up to two weeks in January because of parts shortages.

Some apparel companies opted for their spring fashions to be delivered by air instead of sea to ensure items arrived on time.

For now, the interruptions to supply chains are on a modest scale compared with the more widespread bottlenecks seen in 2020 and 2021.

Back then, shippers passed along the higher costs on ocean freight to consumers, contributing to inflation on a range of consumer goods. Daily freight rates on some routes between Asia and the U.S. surged to more than $20,000 per box, roughly five times higher than current levels.

Businesses have also learned lessons from supply chaos during the pandemic, and some have built up bigger inventories to avoid running out of products.

Suez disruptions have lengthened average sailing times by about 10 days, but consumers haven’t been affected, said Jesper Brodin, CEO of Ingka Group, the company that operates most of the world’s IKEA stores.

“The huge difference is that we have recuperated after the pandemic,” he said in January at the World Economic Forum in Davos, Switzerland. “So that means our stocks in our warehouse are in good shape.”

But as more businesses return to pre-Covid practices of keeping minimal inventories and rely on timely deliveries, they are more vulnerable to disruptions if bottlenecks at the two canals continue.

“It is a watershed moment for consumers because they have been accustomed to globalization,” said Peter Sand, chief analyst at Norway-based shipping platform Xeneta. “They have been getting goods from everywhere at any given time, so it’s paramount to safeguard maritime supply chains.”

The problems meant Connecticut-based Dorian changed the calculus for its ships late last year—twice.

The Panama Canal offers the shortest route for Dorian’s ships setting sail from the Gulf of Mexico to make deliveries to clients in China, Japan and South Korea. The westbound trip, through the canal and then across the Pacific, takes roughly 25 days, compared with 40 going east through the Suez.

Some 14% of seaborne trade in and out of the U.S. sails through the waterway. Several Latin American countries use the canal to move roughly a quarter of their exports.

The drought has meant less water to feed the locks that allow ships to cross the canal. More than 50 million gallons of water are washed to sea every time a ship moves through the locks. That water is replenished from a reservoir that’s now running low.

The canal’s operator normally allows around 36 ship crossings a day. It cut the number to 24 in November and had planned to further cut the transits to 18 in February, but some rainfall helped to stabilize water levels.

To avoid potential multiweek delays in cargo movement, Dorian sent 10 ships to the Suez. Those voyages stopped in early December because of the Houthi attacks. Now ships are being routed again through the Panama Canal, amid longer waits and higher prices.

A single Panama Canal crossing costs around $500,000, with the exception of a handful of boxship operators that are the canal’s top clients. Companies like Dorian have to go through a bidding process where the highest offer secures a crossing. “We paid $2 million extra but we know others that paid close to $4 million more.” Hansen said. Dorian passed those higher costs to its customers.

Ship transits at the Panama Canal in January were down 36% from a year earlier.

The canal’s operator wants to invest around $1 billion on construction and engineering projects to increase access to water reserves, pending government approval. The project could take years to complete.

The canal also supplies water to about 2.5 million people, or around half the country’s population—and the drought is taking a toll on local businesses.

Sabina Torres runs a general store, Tienda 98, at a dock on Lake Alajuela, which is part of the freshwater network that feeds the Panama Canal.

Under the drought, the lake has receded from the dock. Water is available only every other day, from 7 to 9 a.m. Those days, the 46-year-old Torres scrambles to fill tanks and jugs with water for drinking, washing and flushing toilets.

Products that she sells typically arrive by boat, but fewer deliveries can now make it in. Torres bought an all-terrain vehicle and hired additional workers to navigate the mud and rocks and bring her products from the boats.

Torres’s store, which largely serves local residents, makes around $1,500 a month. That fell to $800 in both December and January. She’s now buying more items in advance to make sure she has enough stock. “We are rushing to get enough supplies,” she said.

Under attack

Around the world, prices are rising for cargo owners. Daily boxship rates along routes from Asia to the Americas more than doubled in January from a year earlier, data from U.K. brokerage Braemar showed. Rates for Asia-to-Europe trips were up 67%.

Trade volumes going through the Suez fell more than 40% in December and January compared with the year-earlier period, according to United Nations data. The canal is used by dozens of ships moving Asian exports to Northern Europe and the Mediterranean, along with some of the world’s biggest tankers moving oil from the Middle East.

Maersk, Hapag-Lloyd and other large carriers of ocean freight haven’t returned to the Red Sea, despite the U.S.-led naval coalition’s attacks on the rebel group.

“To go back, we will need to meet a very high threshold to ensure our crews and ships are not in risk,” said Maersk Chief Executive Vincent Clerc, whose company typically made 15 to 17 Suez crossings a week. “So far there is an escalation and I don’t know if the attacks on the Houthis will help out things.”

Clerc said returning to the Suez would require guarantees from security officials that ships could travel safely through the region.

Nikolaev Balan, the executive officer of a European-owned tanker, has crossed the Red Sea and the Suez dozens of times. On Jan. 11, his ship was in the Red Sea during the first U.S. raid on Houthi targets in Yemen.

“We saw a drone flying a few meters from the stern and as we called it in to say that we are targeted. There were warnings on the radio to get out because the Americans will attack,” he said. “We turned back and we are not going back in there.”

In Egypt, supply boat operator Eman Ayad, 42, hasn’t earned much money to move cargo around the Suez over the past several weeks.

Ayad is one of about a dozen independent owners of boats regularly working in the canal zone offering towing services and supplies like food, lubricants and spare parts. The boat’s services generate about $800 a month.

He inherited the boat from his father around a decade ago and it serves as his family’s sole source of income. He said his family, including his wife and three small children, is living on savings.

“If this lasts for another month I will have to sell [the tugboat] to pay debts,” Ayad said. He’s thinking about immigrating to the U.S. where relatives could help him land a job if Suez business doesn’t return—and soon.

Not all vessels are ditching the Suez. Operators sailing the waterway to access the wider region via the Gulf of Aden and the Arabian Sea routinely hire armed guards to help repel attacks. Four guards per vessel can cost about $40,000 per Red Sea voyage, shipowners and operators said.

Toll revenue paid by ships to cross the Suez fell by almost half in January to $428 million, compared with $804 million in the same month last year, said Suez Canal Authority Chairman Osama Rabie. Along with tourism, the Suez Canal is one of the main foreign income sources for Egypt.

At the Panama Canal, the drop in permitted crossings hasn’t dented overall revenue, in part because the per-ship toll increased. The canal brought in $3.3 billion from tolls in 2023, up from more than $3 billion the year prior.

“The operators are complaining, but we try to accommodate as many crossings as possible. The weather has been very unforgiving,” said Ricaurte Vásquez Morales, the canal’s administrator.

Canal authorities don’t expect the bump from crossing fees to last. Ship operators prefer a steady toll regime and the canal wants good relations with its customers, Vásquez Morales said.

The canal authority plans to review the number of permitted daily crossings in April, depending on rainfall levels in March. It expects the effects of the drought to reduce its revenue this year by around $200 million, he said.

Write to Costas Paris at [email protected]

Two Canals, Two Big Problems—One Global Shipping Mess

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panama canal cruise problems

Historic drought at the Panama Canal threatens global shipping

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Disruptions to global shipping are largely focused on the Red Sea at the moment. A U.S. destroyer recently shot down drones and a missile fired by Houthi rebels in Yemen, and the Indian navy released images of a fire aboard a container ship from an earlier attack.

But on the other side of the globe, another key shipping route — the Panama Canal — has a serious problem of its own: not enough water .

Gatún Lake is the huge reservoir in the middle of the Panama Canal. At the hydrology stations there, it’s Nelson Guerra’s job to obsess about water levels. He’s the Panama Canal Authority’s hydrologist.

“The level, as you see on the rulers, is 81.20 feet,” he said. Normally, it should be “5 feet more.”

Water at a water gauge that resembles a ruler.

The lack of water at the Panama Canal is causing a global headache . The number of vessels that can pass through here each day has been slashed from 36 to 24.

José Cervantes from shipping company Agunsa said that this shortcut between the Pacific and Atlantic oceans is the natural route, and that, if it’s blocked, alternatives are needed. That would mean more time and additional costs — costs that are passed on to the consumer.

“These canals allow us to navigate at an inexpensive price — quick delivery times, which is so important,” said Christian Good, a farmer from Macon, Mississippi. “But without those canals, it really adds time.”

Each ship passing through these locks requires around 50 million gallons of water. But it means the canal here is reliant on rainwater, which is in short supply.

The drought, made worse by the El Niño weather phenomenon, is expected to last until May, according to Ilya Espino de Marotta, the canal’s chief sustainability officer.

Ilya Espino de Marotta stands in front of a ship.

“2023 has been the second-driest year in the history of the Panama Canal ,” she said. “We had to cut down on number of ships being able to transit to maintain the lake level through the summer.”

The Canal Authority is trying to reuse as much water as possible. It’s considering building more reservoirs to store water and is even exploring cloud seeding to make it rain more.

The main cause? “We believe it’s climate change,” Espino de Marotta said. “If you look at the world — 2023, the Amazon River [was] very low. Mississippi River had to stop transit, very low level . So it’s not only Panama, it’s the world.”

The problems here are a reminder that while other routes suffer disruption from politics and piracy , climate change may yet be the biggest crisis for global trade.

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panama canal cruise problems

  • Holland America Line

Panama Canal

By Moerin78 , September 24, 2023 in Holland America Line

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Cool Cruiser

We just booked the twelve day partial Panama Canal cruise, I am now reading that other cruise lines have canceled all their canal cruises.   Does anyone have any info regarding Holland America making any changes?  We only booked that cruise because of the canal, I wonder I’d we will be able to cancel with a refund if they change the itinerary?

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When is the cruise?

sailawayward

There are multiple 12-day sailings called the Panama Canal Seafarer scheduled in Jan & Feb of 2024 and also Feb & Mar of 2025.  Find your Roll Call group here to see what feedback they may provide.

Did your itinerary originally include Bonaire?  New restrictions in the Kralendijk port limit the number of cruise ships in port each day.  It affected many cruise itineraries, not just HAL.  Our 9-day cruise on the Rotterdam scheduled in February was affected - we received an extended stay in Aruba (now an overnight).  We didn't expect anything, but no compensation was provided. 

I did read in a thread from a HAL poster their itinerary was changed due to the severe low water levels in the PC.  Limits on daily traffic will continue through 2024.  IDK if this is the issue or not.  Do a search for Panama Canal low water levels.  

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For the 12-Day Panama Canal sailing in January 2024, the original stops in Curacao and Key West were canceled; but HAL added Grand Caymon and Falmouth, Jamaica.

For the 12-Day Panama Canal sailing in February 2024, the original stops in Bonaire and Key West were canceled; but HAL added Grand Cayman and Oranjestad, Aruba.

With the canal's water levels, I thought the ships HAL used in the Canal were within the threshold since they aren't so massive like RCCL's Monstrosity of the Seas.

8 minutes ago, sailawayward said: With the canal's water levels, I thought the ships HAL used in the Canal were within the threshold since they aren't so massive like RCCL's Monstrosity of the Seas.

I also read they are limiting the number of ships regardless of their draft.  But, IDK if this is even the issue addressing the OP's post.  I just remember reading someone else said their PC cruise had changed, but I can't find it now.  HAL pays considerable fees and has "reservation time" for the PC which is a priority over sailing ships that have no reservation.  That is my understanding.  

The cruise departs 12/3 from Ft Lauderdale

On 8/15/2023 at 5:07 PM, CHOPPERTESTER said: Heads up. Just got notice that Key West 14 Dec was dropped and now going to Falmouth Jamaica instead on 13 Dec, 7:00 to 15:00. I assumed something was going to happen as the Virgin Scarlet Lady was scheduled to dock at Key West at the same time at B Dock. 

This was posted on your Roll Call on August 15th.

You can join your Roll Call here:

The 12 day sailing to the Panama Canal on March 17 was changed to an Eastern Caribbean.

I am on the November partial and we are still scheduled for the canal.

Heidi13

2 hours ago, Moerin78 said: We just booked the twelve day partial Panama Canal cruise, I am now reading that other cruise lines have canceled all their canal cruises.   Does anyone have any info regarding Holland America making any changes?  We only booked that cruise because of the canal, I wonder I’d we will be able to cancel with a refund if they change the itinerary?

I suspect you may be referring to the RCCL ship Rhapsody of the Sea, which was scheduled for a full season of Panama Canal cruises, with weekly transits. This was a new cruise, with no other cruise line that I am aware of scheduling weekly transits of the Canal.

Back in the days when I sailed the Canal Shuttle from Acapulco to San Juan and back, we only went through the Canal every 2 weeks and had lots of other ports.

Cruise ships pay a significant premium for reserving transits on a specific day and pay an additional surcharge to guarantee a daylight transit. Although RCCL never provided the operational reason for cancelling the Canal transits and switching to a Caribbean itinerary out of Colon, I suspect they crunched the numbers and realised the ROI was poor. A cruise ship transit, once all the additional fees are included can be $300 to $500K + per transit.

The Canal likes the additional revenue received from cruise ships and box-boats operating on a liner service that also make reservations. They also have a daily lottery, with a cargo ships paying $2.4 million for the privilege of skipping the queue. That was above the regular fees of about 1/2 million.

Yes, due to lower rainfall and lower water levels, the Canal has initiated a limiting maximum draft, which is higher than any cruise ship. You will also hear or read of queues of ships waiting for a transit, which is also something that isn't new. Most cargo ships don't operate on a liner service, so arrive at the Canal, register for the transit and then wait their turn. One of our new ships being delivered from the yard, waited over a week for the transit, and that was about 14 - 15 yrs ago, long before water levels were an actual issue.

I don't expect any changes, as ship continue to transit the Canal daily, especially those the pay the additional fees for a reservation and daylight transit. I also note the Canal also charges additional fees to change and/or cancel a reservation. You also have to consider the Alaska ships are returning to the Caribbean, so based on the ship schedules, the Canal is the only option.

Thanks

2 hours ago, AKJonesy said: I also read they are limiting the number of ships regardless of their draft.  But, IDK if this is even the issue addressing the OP's post.  I just remember reading someone else said their PC cruise had changed, but I can't find it now.  HAL pays considerable fees and has "reservation time" for the PC which is a priority over sailing ships that have no reservation.  That is my understanding.  

Correct, cruise ships pay a significant premium for both making a reservation for a specific day and also a daylight transit. Even if the number of daily transits is reduced due to water levels, the cruise ships and liner service cargo ships with reservations and the ships that bid on the daily lottery, will still go through. The Canal has no wish to lose those additional extra fees.

It is the cargo ships that have no reservation that are delayed.

RICHARD@SEA

Mother Nature will be the deciding factors in all this....

TeaBag

We are sailing Oct 8 on Eurodam from Vancouver and we have not heard anything about an itinerary change due to Panama Canal problems.  This is a repositioning cruise.

CruiserBruce

CruiserBruce

17 minutes ago, TeaBag said: We are sailing Oct 8 on Eurodam from Vancouver and we have not heard anything about an itinerary change due to Panama Canal problems.  This is a repositioning cruise.

There have been NO mention of changes to full transits. Only partial transits.

3 hours ago, CruiserBruce said: There have been NO mention of changes to full transits. Only partial transits.

We are sailing on the Rotterdam's partial Canal transit on Oct. 22nd and so far have not received word it is not going to do it.

Panama Canal transits have been cut due to low water levels.  Full transits should go as scheduled since the ship is repositioning.  Partial Transits are vulnerable since they are taking up valuable slots and it is not essential to their operation that they use the canal--i.e. they do not need to go into the canal in order to continue to sail.  The daily transit number will be reduced again on 11/1.  The Royal Caribbean ship doing partial transits regularly was a casualty.  Other partial transits could be affected.

42 minutes ago, mcmarya said: Panama Canal transits have been cut due to low water levels.  Full transits should go as scheduled since the ship is repositioning.  Partial Transits are vulnerable since they are taking up valuable slots and it is not essential to their operation that they use the canal--i.e. they do not need to go into the canal in order to continue to sail.  The daily transit number will be reduced again on 11/1.  The Royal Caribbean ship doing partial transits regularly was a casualty.  Other partial transits could be affected.

If you are referring to the Rhapsody OTS as the vessel that cancelled an entire season, she was scheduled for full transits of the canal, not partial transits, on a weekly basis. While RCI never indicated the reason for cancelling, I highly doubt it is due to low water levels.

The most likely cause is they realised the ROI was below expectations, as weekly transits of the canal are extremely expensive. Back in the days I did the Panama shuttle, we only went through every 2-weeks.

Since cruise ships pay a huge premium to transit in daylight hours on a fixed day, I don't see the Canal Authority asking cruise ships to cancel so they can be replaced by cargo ships that pay a fraction of the fees paid by cruise lines.

Great Review

shipshape sam

On 9/24/2023 at 9:03 AM, Moerin78 said: We just booked the twelve day partial Panama Canal cruise, I am now reading that other cruise lines have canceled all their canal cruises.   Does anyone have any info regarding Holland America making any changes?  We only booked that cruise because of the canal, I wonder I’d we will be able to cancel with a refund if they change the itinerary?

Good luck on refund.  They have canceled at least on sailing doing the partial transit, but only the Panama Canal portion by rerouting ship/cruise to another port.

You are correct that Rhapsody OTS was doing full transits so I stand corrected.  But since it was not repositioning--i.e. trying to move from Caribbean cruises to Alaska cruises or vice versa--its schedule was still vulnerable.  If ships are being asked to drop sailings, and I have no idea if this is happening, repositioning transits would get priority.  Since Royal Caribbean is not saying the real reason for the change we will never know.  Sailing round trip from Panama makes any cruise less desirable so I imagine they will have a lot of trouble selling the new itinerary.  Anyway, qualifying what I wrote before, repositioning full transits should go as scheduled barring some other constraint.

RMLincoln

OP asked about refunds. The cruise contract pretty much says there is no guarantee of ports or itinerary. The cruise will happen, the ports my change. If the partial transit is dropped, you might see a refund in the fees portion paid which would have included the canal fees. But then there will be other port fees, probably not as high.  From Colon you can take an excursion to see the canal and view lock operations.  Not the same as doing it onboard but you can still see the wonders of the Panama Canal.   

12 hours ago, mcmarya said: You are correct that Rhapsody OTS was doing full transits so I stand corrected.  But since it was not repositioning--i.e. trying to move from Caribbean cruises to Alaska cruises or vice versa--its schedule was still vulnerable.  If ships are being asked to drop sailings, and I have no idea if this is happening, repositioning transits would get priority.  Since Royal Caribbean is not saying the real reason for the change we will never know.  Sailing round trip from Panama makes any cruise less desirable so I imagine they will have a lot of trouble selling the new itinerary.  Anyway, qualifying what I wrote before, repositioning full transits should go as scheduled barring some other constraint.

I fail to see why the Rhapsody OTS schedule was any more vulnerable than any other cruise ships visiting ports on both sides. She had an alternating home port either side of the Canal and would have visited ports on both sides of the Canal, so to complete the cruise, weekly Canal transits were required. The only difference with the Alaska ships that are repositioning, is they aren't changing home ports weekly.

Based on the premium that cruise ships pay for transits on a fixed day and in daylight hours, I suspect the Panama Canal Authority is extremely disappointed with the extensive loss of revenue. Although they will have made some of it back in the cancellation fees payable.

The Panama Canal Authority is a business, so I highly doubt they are asking cruise lines to cancel partial transit sailings, so they can replace cruise ships with a cargo ship paying a fraction of the fee. With a huge debt load and reduced daily transits, they require the additional revenue that cruise ships and liner service vessels provide. The Canal may also have instituted reduced draught requirements, due to the lower water levels, but this doesn't impact cruise ships, which have lower draughts than most cargo ships.

Finally, with respect to the Alaska ships repositioning through the Canal, I envisage NO changes to previous years, so they will go ahead as planned. Having completed well over 20 full transits on both cruise ships and cargo ships, I can't envisage any new operational constraints that will negatively impact the transits this year.

If cruise lines are cancelling partial transits, I'll suggest in these days of additional cost cutting, removing the Canal costs is a significant saving, and is their primary reason. If the Panama Canal Authority had requested they cancel any sailing (which is highly unlikely), or full season, I have no doubt the cruise lines would use this information in the press release.

So, if the Panama Canal authority is allowing partial transits, I wonder why the March 17, 2024 sailing of the Rotterdam was changed to an Eastern itinerary.

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panama canal cruise problems

Yes, the Suez and Panama canal crises are hitting Idaho wallets

While severe drought has dramatically slowed the Panama Canal, Houthis have been attacking shipping vessels in the Red Sea since November.

The headline in this week’s Wall Street Journal was striking: “Two Canals, Two Big Problems – One Global Shipping Mess.”

Houthi attacks in the Red Sea have disrupted global trade in the Suez Canal. Meanwhile, drought at the Panama Canal is a separate gut punch to the economy.

“I think in Idaho, what we're going to see, the impact is not so much on food and agriculture, but it's going to be retail goods,” said Dr. Jim Kroes, professor in the Information, Technology and Supply Chain Management Department at Boise State University. ”With almost more than doubling the rates of shipping goods… that is going to directly impact those types of goods … into Idaho.”

As part of an ongoing conversation regarding the ever-growing importance of supply chains, Kroes visited with Morning Edition host George Prentice to talk about how crises half-a-world-away continue to impact the Gem State.

Read the full transcript below:

GEORGE PRENTICE: It's Morning Edition. Good morning, I'm George Prentice. To be sure, the escalation of violence in the Middle East affects everyone, as does drought…but possibly even more than many of us may think, right down to the level of being a consumer. We're going to spend some time this morning considering how the Houthi militant attacks on commercial vessels are impacting companies across the planet, and how drought near the Panama Canal is impacting so many shipping lanes. So, to help us through this, here comes Dr. James Kroes, a professor in the Information Technology and Supply Chain Management department at Boise State. Dr. Kroes, welcome back to the program.

DR. JIM KROES: Thanks for having me, George. It's nice to talk to you again.

PRENTICE: Can you remind us of how sensitive these shipping lanes are?

KROES: Yes. For sure. So even before the Houthi attacks began on shipping, the global containerized ocean shipping supply chain was pretty stressed because of some issues in the Panama Canal. The Panama Canal to work needs fresh water from Gatun Lake, which was created when they built the canal. Because the vessels that transit the canal get lifted up, move across Panama and then lower down as they go from ocean to ocean. And that lake is at its lowest level since 1965. And that lake water is. There's just not enough water to support the normal volume of traffic across Panama. The lake also supplies half the fresh water for Panama, so that has caused the Panama Canal to reduce transits from about 38 a day down to 24. So that has led to reduced capacity as well as longer waiting times to get through the canal. So ships now are waiting up to 20 days to transit the canal, and instead of waiting, they have two options. They can either go around South America, but what's happened more frequently was instead of going from Asia through the Panama Canal to get to the East coast, they're going from Asia westward, through the Red Sea, through the Suez Canal to get to the east coast of the United States.

PRENTICE: And then it's just a series of dominoes, right? Because whether they're backed up, I'm going to assume that there's cost with that. But if they reroute, they have to refuel… let alone the fact that they're adding on all these extra days for shipping.

KROES: Correct. It's really the extra time. So even going through the Suez Canal adds about a week of transit time. But now with the Houthi attacks, most of the ocean carriers have rerouted their vessels around Africa, which adds another 10 to 11 days of transit time. So, what that does is… it reduces capacity because to maintain the same service levels, the ocean carriers need more vessels to serve the ports at the same frequency. So, it reduces capacity. And that has directly led to a spike in the spot rates for containerized shipping in December beginning of December, to ship a 40-foot container from Shanghai to New York, it was about 2000 $2,500, and now that's over $6,000.

PRENTICE:. And that has to trickle down then to what we're going to be shelling out of our wallets.

KROES: Absolutely. It's a direct cost that gets passed on to consumers once those goods get into the US supply chain.

PRENTICE: Dr. Kroes, just before we went on air, you were sharing with me that you recently had a visit from a former student that has first person knowledge about all of this.

KROES. Ocean Network Express is the sixth largest containerized shipping company in the world. They're a Japanese owned company, but their West coast United States office is actually in Meridian. And they hired a, you know, a number of our supply chain students over the last few years. And one of my former students came back to talk to my logistics class of undergraduate students, um, last week. And, you know, this is, you know, front and center of what that company is facing right now is, you know, how can they maintain the schedules and service that we need to support our supply chain with this, you know, reduction in basically capacity and these added delays.

PRENTICE: I have seen headlines of Tesla and Volvo pausing production… and Ikea saying that there will be disruptions that could lead to delays. But there was a piece of news on the BBC this morning that I thought really hit home. And that was their one of their major grocery chains - Sainsbury's has signs on their shelves that say there could be a problem with availability of black tea. And that's a little bit like telling someone in Idaho that there are no potatoes.

KROES: Correct, correct. And I think in Idaho, what we're going to see, the impact is not so much on food and agriculture, but it's going to be retail goods….consumer goods that are produced in Asia. Electronics, those types of things. We're going to see delays. We're probably going to see some price increases on those goods. Just with the almost  more than doubling of the rates of shipping goods… that is going to directly impact those types of goods that we import from Asia into Idaho.

PRENTICE: And then there are the materials. We heard earlier today about citric acid, a lot of which is made in China and India that normally ships through the Red Sea, and that is used in things like Vitamin Water and Gatorade or chemicals that we use to make cleaning supplies. I mean, all these dots connect.

KROES: One thing that people tend to llose sight of, sometimes is that supply chains are global and…. something that happens across world has a direct impact on us. Through that series of linkages between the consumer and where things are produced. So even if a good is produced in the United States, if the raw materials are coming from somewhere that require containerized shipping, they're going to be delayed and their costs are going to go up.

PRENTICE: Dr. Kroes, this is a fascinating time for you and your students in that you could rip something literally off any day's front page as a as a model or as an experiment that trigger conversation. You came out of the pandemic when all of a sudden all of us were talking about supply chains, and now here we have drought near the Panama Canal and terrorism at Suez Canal. And here you are again. And what an interesting time to be in your class.

KROES: It is. It is one encouraging thing is the job market is really good for my undergraduates. People understand the importance of supply chain. Finally. And, you know, there's huge demand especially, you know, right here in the Valley with everything happening with, you know,  cron's expansion, there's going to be a huge need for students with our skill sets. They can look at these real-world problems and come up with solutions.

PRENTICE: You must when you go shopping, you must look through a very unique lens, right? When you're looking at shelves and availability of products.

KROES: I do, and inventory management is a huge part of our curriculum. So, when I go to, you know, any kind of retail store, I start looking around, you know, at how much stuff is on the shelves and what's missing. And, you know, start thinking about what could be causing those types of issues.

PRENTICE: I want to cycle back to something you said earlier, that we may not necessarily see a direct or immediate impact on food products, but more on manufactured goods, where if we're not seeing that now, we'll see it soon.

KROES: Yeah, there's a lot of stress on the system right now. And over the next few months, especially with the uncertainty, you know, around what's going on in the Red Sea. There's a little bit of good news, though. Um, container shipping capacity is expected to grow about 10% worldwide this year. There are a bunch of new vessels that are coming online, and they were intended to replace older vessels that, you know, that were scheduled to be retired. But I imagine the ocean carriers are going to keep those older vessels in service just to have a little bit more capacity over the next year until we figure out, you know, how things are going to settle out with all these various crises impacting us.

PRENTICE: Dr. Kroes, could you give us an example or two of something that might, uh, that might peak or spike?

KROES: So, I think probably a lot of the retail consumer goods that, you know, we use during the summer are probably on their way or close to being on their way, you know, from manufacturers overseas. So, we're probably going to see increased prices and, you know, maybe some, uh, low inventory and some stock outs for some of the things we use over the summer, you know, patio furniture, recreational goods, those types of things.

PRENTICE: Gardening tools, things like that? All the things that we don't see on the shelves yet, but we're going to desperately want in 60 days?

KROES: Because the shipments for those start months in advance. So, they should be in the supply chain now, moving our way. And if there's delays, that's going to delay them getting onto our store shelves. You know, once the weather turns nice and we want to start doing things that requires those goods.

PRENTICE: I am fascinated by what you do and the fact that your students indeed have increased job security with every day because we need this expertise.

KROES: It absolutely is. I love teaching supply chain. And, you know, the one message I always give my students is, you know, if you want a consistent job where you know exactly what you're going to do, there's other fields that you can get into in business. But if you want a challenge that's different every day and requires you to solve a new problem every day, supply chain management is just a great opportunity for that kind of exciting career.

PRENTICE: We are lucky that you are here with us as well. And he is Dr. James Kroes, a professor in the Information Technology and Supply Chain Management Department at Boise State. Jim, thank you so very much for your time, this day and for all of our visits. We look forward to the next one.

KROES: Thank you, George. Thanks for having me. It's always a pleasure to speak with you.

Find reporter George Prentice @georgepren

Copyright 2024 Boise State Public Radio

panama canal cruise problems

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Holland America Line Opens Bookings for 2025-2026 Panama Canal and Hawaii Cruises

Cruises include new ports, myriad ways to transit the Panama Canal, plus Nieuw Amsterdam’s Hawaii debut 

Seattle, Wash., March 4, 2024 — Holland America Line has opened bookings for 2025-2026 Panama Canal and Hawaii cruises. The premium cruise line, known for longer and destination-focused voyages, will offer departures from five North American homeports , sailing on five ships.

This season of six different Panama Canal cruises includes several firsts: Holland America Line has added the port of Acajutla, El Salvador, on most Panama Canal sailings. Additionally, guests can sail aboard Pinnacle-Class ship Koningsdam as she makes the transit through the canal for the first time. And for those hoping to transit the canal aboard Zuiderdam, new this season are departures from Miami . Voyages span from 15 to 22 days , providing options for those seeking shorter or longer vacations.

“We know a Panama Canal transit is a once-in-a-lifetime experience many of our guests are seeking, and by adding Acajutla to select voyages, we’re making it even more memorable. Guests can discover the ‘Pompeii of the Americas’ with a shore excursion to Joya de Cerén archaeological site, where they’ll explore a Mayan farming village remarkably preserved under volcanic ash,” said  Beth Bodensteiner, Holland America Line’s chief commercial officer. “With four different departure cities, there are so many different ways to experience the Panama Canal aboard one of our ships.

In Hawaii, Nieuw Amsterdam makes its debut, cruising roundtrip itineraries from San Diego, California. The ship will be joined by Koningsdam and Zaandam on island-hopping adventures that nearly all include an overnight at Honolulu, Hawaii’s iconic capital. Panama Canal and Hawaii cruises are offered from October 2025 through April 2026 and range from 15 to 22 days.

Natural and man-made marvels feature prominently on cruises to Hawaii and the Panama Canal, with cascading waterfalls, ancient Mayan ruins and, of course, the Panama Canal’s famous locks. Shore excursions are culturally immersive to show off the natural beauty and rich history of the destinations. Cuisine on board highlights local flavors with golden pineapple, locally sourced fresh fish like Pacific mahi-mahi, fresh homemade salsa and other regional  specialties sourced directly from port to plate.

Highlights of the 2025-2026 Panama Canal Cruise Season:

· Panama Canal cruises are aboard Eurodam, Koningsdam and Zuiderdam.

·Cruises start or end in Vancouver, British Columbia, Canada; Seattle, Washington; San Diego, California; or Miami or Fort Lauderdale, Florida.

·Guests enjoy a daylight transit of the Panama Canal, with commentary on the open decks detailing the amazing feat of the man-made marvel.

·Itineraries range from 15 to 22 days and include a combination of calls in Aruba, California, Canada, Colombia, Costa Rica, El Salvador, Guatemala, Mexico, Panama and Turks and Caicos.

·Several cruises offer multiple embarkation or disembarkation options. For example, Fort Lauderdale to San Diego, Seattle or Vancouver.

·Select Panama Canal sailings include a call at Acajutla, a new port for Holland America Line, offering excursions to remarkably preserved Mayan ruins, volcanoes, and cacao plantations, while also providing a gateway to see more of El Salvador, including San Salvador and Nahuizalco.

·Many Panama Canal cruises include a call at Half Moon Cay, Holland America Line’s award-winning private island in the Bahamas.

Highlights of the 2025-2026 Hawaii Cruise Season:

· Cruises to Hawaii are aboard Koningsdam, Nieuw Amsterdam and Zaandam. This will be Nieuw Amsterdam’s first season in Hawaii.

·Guests sailing aboard Nieuw Amsterdam will be able to experience the culinary delights of the ship’s newest restaurant, Morimoto by Sea. Guests sailing on Koningsdam or Zaandam will also be able to experience the restaurant menu during special pop-up dinners.

· Itineraries are roundtrip from San Diego, roundtrip from Vancouver, or from Vancouver to San Diego.

·  17-day “Circle Hawaii” from Vancouver to San Diego visits Nawiliwili, Kahului, Hilo, Honolulu (overnight) and Kona. The 17-day roundtrip from San Diego features either an overnight or late departure from Honolulu, a call to Ensenada, Mexico, and more Hawaiian ports like Kona and Kahului.

·  18-day “Circle Hawaii” is roundtrip from San Diego or Vancouver and calls at Kahului, Hilo, Honolulu (overnight), Nawiliwili and Kona. Roundtrip San Diego adds a call at Ensenada and roundtrip Vancouver includes Victoria, Canada.

Have It All Booking Bonus

For a limited time, when guests book select 2025-2026 Panama Canal and Hawaii cruises with the Have It All premium package, the standard package amenities of shore excursions, specialty dining, a Signature Beverage Package and Surf Wi-Fi are included — plus the added perk of free prepaid Crew Appreciation, along with free upgrades to the Elite Beverage Package and Premium Wi-Fi. Terms and conditions apply.

Beginning cruise-only fares for 2025-2026 Hawaii cruises start from $1,579 and Panama Canal fares begin at $1,779, per person, double occupancy. Taxes, fees and port expenses are additional. Visit hollandamerica.com for full details.

Can the Panama Canal save itself?

  • Published 6 March

A ship being guided through the Panama Canal

The most famous waterway in the Americas is running dry.

Unlike the Suez Canal, the Panama Canal is fed by a freshwater lake, Lake Gatún, and its water level is falling critically low.

After a choppy boat ride across Lake Gatún, Nelson Guerra, the Panama Canal Authority's hydrologist, points toward a rusted ruler beneath a tower on the western end of the water.

"The level, as you see on the rulers, is 81.20ft," he says. "The level should be five feet more than now."

On the return journey, the boat passes old tree stumps sticking out of the water. They were never fully cut down during the original construction of the lake. Normally, only a few would be visible at this time of year. But half way through the dry season, there's a forest of them.

Nelson Guerra

The Panama Canal is reliant on rainwater, which is in short supply.

A lack of rain and the El Nino weather phenomenon have contributed to the second driest year in the canal's 110-year history.

Last October was the driest month since records began. The canal region saw 41% less rainfall than normal, and the drought threatens to continue disrupting the $270bn (£213bn) worth of cargo that flows through the Atlantic-Pacific shortcut annually.

They've had to introduce water-saving measures, which has meant fewer ships can pass through the canal each day. This is because water from the lake is required to operate the canal's locks.

The number of vessels has been slashed from an average of 36 to 24. Each ship is also carrying less cargo now because of weight restrictions.

The slowdown spells trouble for global trade.

In normal times about 5% of global maritime trade uses the Atlantic-Pacific shortcut, and 40% of US container traffic. If the route runs dry, shippers will be forced to find alternatives - lengthening journey times and pushing up costs.

And the lack of water is not just a problem for global trade. The Panama Canal Authority also supplies drinking water for half of the country's population, including the residents of the capital, Panama City.

But those who run the canal are taking steps to ensure it remains viable for another century, and beyond.

The Panama Canal Authority's first ever chief sustainability officer, Ilya Espino de Marotta, says they are working on finding solutions to ensure the canal does not run out of water.

Ilya Espino de Marotta

"We don't want this to be a recurrent issue. We don't want to drop transits or tonnage," she says.

The authority has been busy developing a plan to invest $8.5bn in sustainability projects over the next five years that it hopes can help the vaunted waterway survive, even as changes rock the planet.

Addressing the changing climate, Ilya Espino de Marotta says: "Panama is a very rainy country… but we see there's a [reduced rainfall] pattern coming that is impacting everywhere. So we definitely need to prepare for the future."

One obvious measure involves water conservation.

The Panama Canal works by transiting boats through a series of above-sea-level locks fed by Lake Gatún and the smaller Lake Alajuela.

Each ship that passes through the locks uses around 50 million gallons of water, and a handful of new locks built in 2016 - the larger Neo-Panamax locks - save 60% of that water.

However, the older Panamax locks remain in operation, and overhauling them would be a major project. In the meantime, the canal authority has found ways to reuse water from one lock chamber to another, so called cross-filling, saving the equivalent of six daily crossings.

The authority is also considering building reservoirs, its first major project since it completed the new set of locks in 2016.

The Panama Canal

To save more water in rainy months and increase supply in drier times, it wants to dam up the nearby Indio River, and pipe the fresh water into Lake Gatún, the canal's main reservoir. The plan would increase vessel traffic by 12 to 15 a day.

Moving forward won't be easy though. The project doesn't have congressional approval yet, and construction will take several years to complete.

Another option is to build desalination plants. The lack of rain has increased the salinity of the lakes and rivers, a challenge that has to be managed given it's the country's biggest source of potable water. But that option is costly and removing salt from seawater requires a huge amount of energy.

Even seeding clouds in the hopes of creating more rain isn't off the table. The process of implanting large salt particles into clouds to boost rainfall sounds futuristic, but has been around since the 1940s.

A solution needs to be found lest global trade, which has become more unstable this year, gets even more so. Trade volumes through the Panama Canal have fallen 49% compared to its peak.

José Cervantes, a general manager at the Panama branch of shipping company Agunsa, says their daily operations have been hit. Shipments of two million tons of goods from textiles to food have been delayed because of the disruptions at the Panama Canal.

He says the problem is that there are no other good shortcuts.

José Cervantes

Some ships carrying cargo from Asia were rerouted through the Suez Canal, before the current Red Sea crisis. With that option less secure, there's been an increase in demand for rail and road transport across Panama.

But José Cervantes says all that unloading and reloading of cargo from ships onto trains and trucks is pushing up costs. "And those costs are usually passed onto the consumer," he says.

If rains arrive in May as expected, the canal plans to increase the number of ships that can pass through its locks, but that is only a short term solution.

Changing rainfall patterns, serve as a reminder of the major impact climate change could have on global trade and on the long term future of the Panama Canal.

For more on this topic, listen to Business Daily: Disruption and drought in the Panama Canal on BBC Sounds.

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panama canal cruise problems

Books open for Holland America’s 2025-2026 Panama Canal and Hawaii cruises

Post date: Mar 15 2024

Date: Mar 15 2024

By: Travelweek

SEATTLE — Holland America Line has opened bookings for its 2025-2026 Panama Canal and Hawaii cruises.

Departures from five North American homeports will be available on five ships. Panama Canal and Hawaii cruises are offered from October 2025 through April 2026 and range from 15-22 days.

panama canal cruise problems

The season of six different Panama Canal cruises will include several firsts, like the addition of the port of Acajutla, El Salvador on most of the sailings. Additionally, guests can sail aboard the Pinnacle-Class ship Koningsdam as it makes the transit through the canal for the first time. And for those hoping to transit the canal aboard Zuiderdam, new this season are departures from Miami, with voyages spanning 15 to 22 days.

“We know a Panama Canal transit is a once-in-a-lifetime experience many of our guests are seeking, and by adding Acajutla to select voyages, we’re making it even more memorable,” said Beth Bodensteiner, Holland America Line’s chief commercial officer. “With four different departure cities, there are so many different ways to experience the Panama Canal aboard one of our ships.”

In Hawaii, Nieuw Amsterdam will make its debut, cruising roundtrip itineraries from San Diego, California. The ship will be joined by Koningsdam and Zaandam on island-hopping adventures that nearly all include an overnight at Honolulu. 

Beginning cruise-only fares for 2025-2026 Hawaii cruises start from US$1,579 and Panama Canal fares begin at $1,779 per person, double occupancy. Taxes, fees and port expenses are additional.

HIGHLIGHTS OF THE 2025-2026 PANAMA CANAL SEASON

  • Panama Canal cruises sail aboard Eurodam, Koningsdam and Zuiderdam
  • Cruises start or end in Vancouver, BC; Seattle, Washington; San Diego, California; or Miami or Ft. Lauderdale, Florida
  • Guests enjoy a daylight transit of the Panama Canal, with commentary on the open decks
  • Itineraries range from 15-22 days and include a combination of calls in: Aruba; California; Canada; Colombia; Costa Rica; El Salvador; Guatemala; Mexico; Panama; and Turks and Caicos
  • Several cruises offer multiple embarkation or disembarkation options (ie. Ft. Lauderdale to Sani Diego, Seattle of Vancouver)
  • Select Panama Canal sailings include a call at Acajutla, a new port for Holland America Line, offering excursions to Mayan ruins, volcanoes and cacao plantations, while also providing a gateway to see more of El Salvador
  • Many Panama Canal cruises include a call at Half Moon Cay, Holland America Line’s private island in the Bahamas

HIGHLIGHTS OF THE 2025-2026 HAWAII CRUISE SEASON

  • Cruises to Hawaii sail aboard Koningsdam, Nieuw Amsterdam and Zaandam (this will be Nieuw Amsterdam’s first season in Hawaii)
  • Guests sailing aboard Nieuw Amsterdam will be able to enjoy the ship’s newest restaurant, Morimoto by Sea
  • Itineraries are roundtrip from San Diego, roundtrip from Vancouver, or from Vancouver to San Diego
  • The 17-day “Circle Hawaii” from Vancouver to San Diego visits Nawiliwili , Kahului, Hilo, Honolulu (overnight) and Kona
  • The  17-day roundtrip from San Diego  features either an overnight or late departure from Honolulu, a call to Ensenada, Mexico, and more Hawaiian ports like Kona and Kahului
  • The 18-day “Circle Hawaii” sails roundtrip from San Diego or Vancouver and calls at Kahului, Hilo, Honolulu (overnight), Nawiliwili and Kona (roundtrip San Diego adds a call at Ensenada and roundtrip Vancouver includes Victoria, Canada)

HAVE IT ALL BOOKING BONUS

For a limited time, when guests book select 2025-2026 Panama Canal and Hawaii cruises with the Have It All premium package, the standard package amenities of shore excursions, specialty dining, a Signature Beverage Package and Surf Wi-Fi are included – plus the added perk of free prepaid Crew Appreciation, along with free upgrades to the Elite Beverage Package and Premium Wi-Fi. 

For more information go to www.hollandamerica.com .

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panama canal cruise problems

IMAGES

  1. La peor sequía en Panamá amenaza el futuro del canal

    panama canal cruise problems

  2. Disaster Strikes as Huge Ship Travels Through Panama Canal

    panama canal cruise problems

  3. How the Panama Canal traffic jam is affecting ocean shipping

    panama canal cruise problems

  4. China's plan to build £25bn rival to the Panama Canal

    panama canal cruise problems

  5. Drought hits Panama Canal shipping, highlights climate fears

    panama canal cruise problems

  6. Water Supply Crisis Threatens Future of Panama Canal

    panama canal cruise problems

COMMENTS

  1. The Drop in Panama Canal Traffic Due to a Severe Drought Could Cost up

    Jan. 17, 2024, at 7:48 p.m. The Drop in Panama Canal Traffic Due to a Severe Drought Could Cost up to $700 Million. Agustin Herrera. A cargo ship waits near the Centennial Bridge for transit ...

  2. Panama Canal has gotten so dry and backed up after brutal ...

    So the Panama Canal Authority has ratcheted back the number of ships allowed to pass, from an average of 36 to 38 per day in the past to an expected 18 in February, half the normal amount.

  3. Panama Canal Drought Slows Cargo Traffic

    Panama Canal Drought Slows Cargo Traffic. By Mira Rojanasakul. Jan. 26, 2024. The lake that allows the Panama Canal to function recorded the lowest water level ever for the start of a dry season ...

  4. Panama Canal drought hits new crisis level amid severe El Nino

    The Panama Canal Authority is starting new cuts in vessel traffic which will reach over a 40% reduction of vessels by February due to an ongoing drought. "This will be the worst El Nino recorded ...

  5. Delays, Cancellations and Costs Mount as Panama Canal Reduces Transits

    CMA CGM starting September 1 is expanding its Panama Canal surcharge of $300 per TEU to additional routes including trips to the U.S. East Coast and Gulf Coast. Starting in July, Hapag-Lloyd ...

  6. Panama Canal to slash booking slots due to drought over coming months

    The Panama Canal, one of the world's main maritime trade routes, will further reduce daily ship crossings in the coming months due to a severe drought, the authorities managing the canal said late ...

  7. Drought Saps the Panama Canal, Disrupting Global Trade

    The problems at the Panama Canal, an engineering marvel that opened in 1914 and handles an estimated 5 percent of seaborne trade, is the latest example of how crucial parts of global supply chains ...

  8. A historic drought is causing a huge traffic jam at the Panama Canal

    The Panama Canal is one of the world's major trade routes, but currently it's experiencing a huge traffic jam with dozens of ships backed up in both the Atlantic and Pacific Oceans. The cause?

  9. Long delays at Panama Canal after drought hits global shipping route

    Commercial ships are facing long queues and delays to travel through the Panama Canal as a lengthy drought in the Central American country has led to a cut in the number of vessels able to pass ...

  10. Panama Canal is taking a small step to ease the epic traffic jam that

    The Panama Canal, which has been strained by drought for months, will increase the number of ships it accepts each day starting in January, thanks to better-than-expected November rains.

  11. Drought-hit Panama Canal must 'adapt or die' as water levels drop

    The Panama Canal, an engineering wonder allowing ships to travel between two oceans, is seeking to adapt to climate change after a biting drought has seen traffic and income dry up. Topics Week's top

  12. Panama Canal restrictions to stretch into 2024 as low water levels

    Panama Canal restrictions to stretch into 2024 as low water levels persist. The constraints have had a limited impact on cargo due to more blank sailings and earlier peak season activity, analysts say. Published Nov. 7, 2023. Alejandra Salgado Staff Reporter. A view of the Miraflores locks at the Panama Canal on March 11, 2013.

  13. What's Causing the Panama Canal Logjam

    Panama is one of the world's wettest countries; the 75 inches (191 centimeters) of rainfall it receives per year provides plenty of freshwater for Gatún Lake and the canal.

  14. Are cruise ships facing delays going thru the Panama Canal? I am going

    See Panama Canal water woes for a start. Several of the regular Viking cruisers, or individuals with mariner experience have commented. In short, cruise ships pay to have reservations to enter the canal on a specific date and time. There is quite a bit of information if you search through and read the threads.

  15. Panama Canal is so backed up and 'unreliable' that ships ...

    The Panama Canal Authority, which normally handles about 36 ships a day, announced on Oct. 30 that it will gradually reduce the number of vessels to 18 a day by Feb. 1 to conserve water heading ...

  16. The Panama Canal Averts a Crisis for Now— But at a Cost to Drinking Water

    The Panama Canal has avoided the worst of a shipping crunch that threatened to upend the global economy — but at a cost to marine life and the Latin American country's supplies of drinking water.

  17. Panama Canal to further reduce daily transits if drought continues

    The Panama Canal could further reduce the maximum number of authorized daily vessel transits if this year's drought continues, the waterway's administrator said on Tuesday.

  18. Panama Canal drought causes global disruptions

    Clip: 01/31/2024 | 6m 4s |. My List. An extreme drought in Panama is forcing authorities to substantially scale back shipping through the Panama Canal, one of the world's key shipping channels ...

  19. Panama Canal to Increase Daily Transits in January

    December 19, 2023. The Panama Canal Authority (ACP) has announced that it will increase the number of daily transits to 24 starting in January. Currently, 22 vessels transit daily, divided into 6 Neopanamax and 16 Panamax. This restriction is in response to the current state of Gatun Lake, which is experiencing unusually low water levels for ...

  20. Are you booked on a Panama Canal cruise?

    Posted August 16. 34 minutes ago, basor said: The August 21 deadline is to reevaluate the reservation allotment for commercial vessels. Oceania already has a reservation for your sailing Also, all of this delay and reservation allotment is for large commercial vessels Panamax, New -Panamax, Neo-Panamax or Post-Panamax.

  21. Two Canals, Two Big Problems—One Global Shipping Mess

    Two Canals, Two Big Problems—One Global Shipping Mess. Story by Costas Paris. • 4d • 8 min read. Drought in Panama and Houthi attacks in the Red Sea are delaying deliveries and pushing up costs.

  22. A severe drought is affecting the Panama Canal. That's not a ...

    A cargo ship sails toward the Pacific Ocean after passing though the Panama Canal, seen from Panama City, Friday, Aug. 25, 2023. Due to a lack of rainfall, authorities in early August limited the ...

  23. Historic drought at the Panama Canal threatens global shipping

    The lack of water at the Panama Canal is causing a global headache. The number of vessels that can pass through here each day has been slashed from 36 to 24. José Cervantes from shipping company ...

  24. Panama Canal

    They also have a daily lottery, with a cargo ships paying $2.4 million for the privilege of skipping the queue. That was above the regular fees of about 1/2 million. Yes, due to lower rainfall and lower water levels, the Canal has initiated a limiting maximum draft, which is higher than any cruise ship.

  25. Idaho's economy is impacted by Houthi attacks near the Panama Canal

    123rf. While severe drought has dramatically slowed the Panama Canal, Houthis have been attacking shipping vessels in the Red Sea since November. The headline in this week's Wall Street Journal was striking: "Two Canals, Two Big Problems - One Global Shipping Mess.". Houthi attacks in the Red Sea have disrupted global trade in the Suez ...

  26. Holland America Line Opens Bookings for 2025-2026 Panama Canal and

    Cruises include new ports, myriad ways to transit the Panama Canal, plus Nieuw Amsterdam's Hawaii debut . Seattle, Wash., March 4, 2024 — Holland America Line has opened bookings for 2025-2026 Panama Canal and Hawaii cruises. The premium cruise line, known for longer and destination-focused voyages, will offer departures from five North American homeports, sailing on five ships.

  27. Can the Panama Canal save itself?

    The Panama Canal works by transiting boats through a series of above-sea-level locks fed by Lake Gatún and the smaller Lake Alajuela. Each ship that passes through the locks uses around 50 ...

  28. Books open for Holland America's 2025-2026 Panama Canal and Hawaii cruises

    Share. SEATTLE — Holland America Line has opened bookings for its 2025-2026 Panama Canal and Hawaii cruises. Departures from five North American homeports will be available on five ships. Panama ...