Panama Canal reduces vessel transit slots amid dry conditions

The Panama Canal Authority (ACP) will reduce daily vessel transits to a maximum of 34 for booking dates starting 4 September.

IMAGE: Container loading area in the port of Balboa. Getty Images

This will comprise nine Neopanamax vessels and 25 Panamax vessels.

The number of daily slots for Panamax vessels will be reduced further to 23 from 15 September, bringing total daily capacity down to 32 vessels.

The measures will affect vessels using both sets of locks. The Neopanamax locks accommodate larger vessels, including container ships, LNG and LPG carriers, while the Panamax locks handle smaller vessels.

The authority has warned that the lower number of daily transits could result in longer waiting times for vessels arriving without a secured reservation and has urged customers to make use of the canal's booking system.

"So far we have not seen an immediate impact on fuel demand at the ports, but wait times can be expected to become longer in upcoming weeks," a bunker trader told ENGINE.

The restrictions come as rainfall in the canal watershed has remained well below normal. Rainfall from May through August was 34% below the historical average, while watershed inflows were 44% below average, according to the ACP.

The maximum authorised draft at the Neopanamax locks will be reduced to 14.63 metres (48 feet) from 2 September, followed by a further reduction to 14.48 metres (47.5 feet) from 1 October.

The latest measures follow a previous reduction in the Neopanamax draft limit to 15.09 metres (49.5 feet) from 3 July, amid concerns over El Niño.

By Gautamee Hazarika

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