Panama Canal Update: Drought Restrictions Create Backlog

Restrictions are in place at the Panama Canal to conserve water - creating a backlog of ships waiting to pass.

Panama Canal Update AgDay TV_0.png
Panama Canal Update AgDay TV_0.png
(AgDay)

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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