Panama Canal Update: Drought Restrictions Create Backlog

Panama Canal drought restrictions expected to continue into 2024.
Panama Canal drought restrictions expected to continue into 2024.
(AgDay TV)

Prolonged drought and decreased water levels at the Panama Canal have led to shipping restrictions to conserve water.

The restrictions include limited the number of daily ship transits to 32, compared to the usual 36.

Canal authorities have announced their intention to maintain this limit, and it is expected to continue well into 2024.

As of last week, the restrictions have resulted in a backlog of 116-vessels waiting to cross the canal, which is the main route for about 60% of total cargo transported by container ships from Asia to the eastern coast of the U.S.

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