EXTENDED low-water restrictions on the Panama Canal, which limit the number of containership transits and stowage weights, will remain in place at least until June, reports New York's Journal of Commerce.
These stricter rules were announced by the canal authority in late August.
The limitations on the canal's draft, caused by increasingly dry weather and underdeveloped reservoirs, have led to more frequent and ad hoc calls to the Port of Lazaro Cardenas in Western Mexico by shipping carriers.
While there is a possibility that these restrictions may be eased, scientists warn that climate change is now affecting the formation of El Nino.
Initially, when the Panama Canal limitations were first imposed in June, they had a limited impact on container shipping operations, as carriers had not yet aggressively reduced their capacity to match weak demand.
However, lighter loadings now result in empty cargo holds, increasing operating costs for carriers that affects their bottom lines.
Nevertheless, the container shipping sector is still less affected than the tanker and bulk shipping counterparts.
In contrast, the Suez Canal does not face such limitations, as it has no locks or significant changes in water levels that concern the Egyptian government operators.
It can accommodate the world's largest ships, with Mediterranean Shipping Co's (MSC) Irina boasting a capacity of 24,346 TEU.
However, the Suez Canal has had its share of problems, such as the grounding of the Ever Given in March 2021 and security concerns, including a 2015 Islamic guerrilla rocket-propelled grenade attack at a Cosco ship.
Due to shifts in trade sourcing, there is a renewed focus on the Suez Canal, particularly with the increasing production in Southeast Asia and the Indian subcontinent.
While moving away from China is not a simple task, geopolitical pressures are mounting for importers to diversify their sourcing.
As a result, shippers are requesting more capacity from container lines like CMA CGM and others.
https://www.shippingazette.com/menu.asp?encode=eng
|
Back:
Next:
