Panama Canal capacity could normalise by next year - authority

The Panama Canal Authority (ACP) has made progress in restoring normal canal operations following a challenging period of drought-induced restrictions on drafts and transits.

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

The ACP recently said that weather forecasts look optimistic, with rainfall set to increase from late April and last for several months. This positive outlook has led the ACP to consider gradually easing transit restrictions, with the aim of fully normalising conditions by 2025. The ACP painted a more rosy picture now after some recent rainfall and ongoing water-saving initiatives.

The prolonged drought, exacerbated by the El Niño weather phenomenon, had prompted concerns and led many global shipping companies to seek alternative routes due to long queues and high toll fees. However, recent developments, including the addition of three extra slots per day at the panamax locks from mid-March, have given reasons for more optimism among shipowners and Panamanian bunker suppliers.

The maximum number of total daily transits now stands at 27, which is still below the waterway’s normal maximum capacity of about 35-36 slots.

Danish shipping major Maersk has started transiting the canal with ships again after temporarily shifting to a land-based rail transit alternative during the height of the drought crisis.

The ACP emphasised that any modifications to current restrictions will depend on future weather forecasts, with more restrictions potentially coming without enough rainfall. The rainy season usually starts in May.

There are currently 46 ships waiting to transit the canal, marking a significant decrease from a peak of about 130 last August.

By Debarati Bhattacharjee

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