Industry News

The Panama Canal is reducing the number of slots available daily for transits of the waterway that links the Atlantic and the Pacific as the impact of El Niño starts to bite.

From 3 September the number of slots available in the Neo-Panamax locks will be capped at nine and the Panamax locks at 25. From 15 September the number of slots for the Panamax locks will be reduced to 23.

Normally the maximum number of daily transits of the canal is around 38 in total so from 3 September this will be reduced to 34 and to 32 in total from 15 September.

“Despite the arrival of the rainy season in Panama, and the water-saving measures implemented by the Panama Canal to mitigate the adverse effects of the El Niño event, current watershed conditions, including below-expected precipitation in the Canal watershed, require additional action to support the long-term sustainability of transit operations,” the Panama Canal Authority stated.

Related:Panama Canal sees increase in transits as El Niño impact looms

Daily auction slots are also be adjusted into four groups in a move that the ACP said is designed to balance the allocation of slots with the groups as follows:

Group 1: LNG, LPG

Group 2: Dry Bulk Carriers, General Cargo, Others

Group 3: Container vessels, Vehicle Carriers / ro-ro, reefer

Group 4: Chemical Tankers, Crude / Product Tankers

The price paid for auctions slots has already surged to as high as $4 million for a single transit in recent months as demand for Panama Canal transits has been high due to supply chain disruptions in other parts of the world.

The canal authority said that individual customer limits for transits do not apply for auction slots and the Neo-Panamax locks full container ships with the highest capacity will be given priority in the booking process. Customer ranking will be used in the event of a tied bid.

The latest measures announced for the Panama Canal will put further stress on supply chains already impacted by conflict in the Middle East and port congestion in Europe.

Source: www.seatrade-maritime.com