Panama Canal's Prolonged Low Water Delays Could Impact U.S. Gulf and East Coast Ports for Up to 10 Months

Trade & Border IssuesHot Spots
Written By Jennifer Joslyn

💧 Panama Canal's Prolonged Low Water Delays Could Impact U.S. Gulf and East Coast Ports for Up to 10 Months.

The Panama Canal is grappling with the ramifications of a prolonged drought, resulting in low water levels and substantial vessel traffic congestion, which may persist for up to ten months, as reported by Athens-based shipbroker Intermodal. Chara Georgousi, Intermodal’s Research Analyst, indicated that according to the Panama Canal Authority's recent update, water-saving measures will be enforced for the following ten months. The disruption coincides with the peak holiday season, potentially affecting supply chains as retailers gear up for heightened shipping activity to meet consumer demand. While the situation doesn't immediately threaten container shipping to and from U.S. Gulf and East Coast ports, the reliance on the Panama Canal for container shipping between these ports and Asia means that prolonged low water conditions could have more profound implications.

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Jennifer Joslyn
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