Panama Canal Cuts Vessel Passage Quota From 32 Daily Crossings To 31 In Response To Drought

Daily vessel crossings on the Panama Canal, one of the key maritime trade channels in the world, will reportedly be reduced from 32 to 31 to soften the effect of a massive drought expected to last till next year, relevant authorities who manage the canal mentioned.

The Panama Canal Authority (referred to as the ACP) in recent months has imposed several passage limitations to conserve water. These include cutting vessel drafts and daily passage authorizations, which are typically 36 each day.

The ACP stated on Friday that owing to the ongoing water crisis, it considers it essential to implement more changes, with new rules implemented from 1 November.

Daily crossings will see nine vessels pass via the Neopanamax lock and 22 via the Panamax lock, per the ACP, while transit reservation quotas will be adjusted to a maximum capacity of 30 daily.

To prevent delays and vessel backlogs, the ACP will also offer a new schedule for Neopanamax and Panamax locks, part of efforts to permit customers to adjust itineraries and lower waiting times for ships that don’t have a transit schedule for each day.

Specialists have reportedly warned of probable disruptions to wider maritime trade in the face of what seems to be shaping up to be an even drier phase in 2024.

They further argue that a probable early start to the Panamanian dry season and above-average temperatures might increase evaporation and result in almost record-low water levels in April.

The limitations have led to long waiting vessel queues, even though the canal administration said on Friday that the levels were normal. The impact has led the canal to a revenue reduction of nearly $200 million by 2024.

References: Reuters, newsinfo.inquirer.net

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