Panama Canal Daily Transits To Rise To 34 From July 22
The easing of the number of daily vessels allowed to transit via the canal will reduce the amount of time shippers have to wait to transit the canal to less than two days.
The Panama Canal Authority has increased the number of vessels allowed to cross the Panama Canal each day as water levels are rising.
Earlier, the authority had reduced the number of vessels allowed to cross the Panama Canal each day to 22, which is 60% of the normal traffic, due to falling water levels. By carefully managing water, the canal helped avert a shipping crisis that threatened to disrupt $270 billion in global trade annually.
During a drought, vessel crossings were limited, but now that water levels are rising, the authority has raised the daily limit, reducing wait times.
About The Panama Canal
The Panama Canal is critical to global maritime transpiration and serves as a vital link between the Atlantic and Pacific Oceans.
According to the International Trade Administration, the Panama Canal is not only a strategic asset for the United States, but it also helps shorten the distance between ports on the east and west coasts of the Americas. Around 72% of transiting ships are either going to or coming from US ports, it said.
The canal also allows ships to save considerable travel time and fuel costs. It also plays a crucial role in global supply chains and supports the movement of various commodities, including dry bulk, containers, chemical tankers, LPG carriers, LNG carriers, vehicle carriers, and more.
Higher Transit Allowed
Earlier this month, the Panama Canal told shipping companies that, starting on July 11, the number of daily transits permitted via the canal will increase from 32 to 33.
Furthermore, this number will increase to 34 as of July 22. This would be based on the current and projected level of Gatun Lake in the coming weeks, as well as the arrival of the rainy season in the Panama Canal Watershed.
With these progressive increases, by July 22, the Canal will have added two transits to the current schedule: one to the panamax locks and one to the neopanamax locks. These lock systems essentially allow ships to travel between the Atlantic and Pacific Oceans.
Who Benefits?
The easing of the number of daily vessels allowed to transit via the canal will reduce the amount of time shippers have to wait to transit the canal to less than two days. Furthermore, if rain patterns hold, the waterway could return to full capacity by 2025, the canal authority told Bloomberg.
According to Bloomberg, exporters of liquefied natural gas would potentially benefit from easing canal constraints.
Most LNG tankers have been sailing via the Cape of Good Hope, however, with relatively low gas prices in Europe and Asia making it unattractive for carriers to pay more to cut through the canal.
