The Panama Canal: one year on

29 July 2024

In August 2023, we wrote about it: the Panama Canal is experiencing a severe drought. This problem has had a major impact worldwide. In this article, we look back at the past year. What measures were taken? And how is the Panama Canal doing now?

The past year

Since May 2023, the Panama Canal has been struggling with massive drought. The water shortage, caused by climate change, has led to long queues. The shipping business had no choice but to opt for alternative routes. Naturally, this has had global implications for trade.

Normally, the canal can handle up to 40 ships per day. Low water levels have now reduced the capacity to 34 ships per day. The result: longer waiting times for ships. This has increased the risk of your cargo arriving later at the unloading port.

Fortunately, the second quarter of 2024 saw a lot of rainfall in Panama. This provides some relief. But the drought has been a wake-up call in recent years.

Improvements to the flow

The authorities announced that effective 5 August 2024, the Panama Canal’s transit capacity will be increased again. An additional booking slot will be added, increasing the number of ships that can pass through the canal per day to 35. This is the next step after the earlier increase to 34 ships per day, which took effect on 22 July 2024.

In addition, the permitted draft in the Neopanamax locks will be increased from 14.33 to 14.63 meters. These steps are important to improve the Panama Canal’s transit capacity and infrastructure.

The future

What the future looks like cannot be predicted. Any future adjustments are subject to the water level of Lake Gatún as well as the upcoming rain season. The more rain, the higher the water level.

Do you have any questions about the situation in the Panama Canal? Please contact us for the most up-to-date information.