Panama Canal authority extends limitations on vessels passing through the canal - SEKO

The US-based logistic firm said that the Panama Canal Authority is currently imposing surcharges and weight limits on ships using its waterway because of an unprecedented drought.

PHOTO: Port of Balboa at Panama's Pacific Ocean side. Getty Images

The canal authority has reduced the maximum draft limit for the Neopanamax locks by around two meters because of the significant impact of the drought, “particularly hard this season", SEKO said in its latest customer advisory update.

SEKO stated that the drought’s effects have led the canal authority to reduce the average daily number of ships allowed to navigate the canal. This reduction has lowered the number of daily transits from 35-36 to 32 until 21 August.

The restrictions are particularly affecting trade flows between China, Japan, and South Korea. Certain parts of the US are also being affected due to the restrictions, as the Panama Canal facilitates 46% of container movement from northeastern Asia to the US, stated SEKO.

“As a result, supply chains for goods frequently transported through the canal are likely to be significantly slowed,” said the company.

SEKO further added that if the delay in the Panama Canal persists, it will consider re-routing shipments via the West Coast or the Suez Canal, depending on the point of origin.

By Aparupa Mazumder 

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