Due to drought, Panama Canal Authority made a decision to conserve Water in Late July which resulted to reduced daily number of transits through Panama Canal. The authority said it working to address an ongoing drought that is not expected to lessen soon, but shipping companies are reporting increasing delays and added costs which had prompted some to look for alternatives.
The canal authority has been encouraging shipping companies to book their slots to minimize delays. Since it adding to the expense in addition to the transit fees, this process is costlier for the shipowners.
The delays in the canal are forcing ships to take longer routes, which results in increased fuel costs and travel time. This can potentially lead to price hike for consumers and supply chains disrupted.
On the other side Panama Canal is taking proactive measures to make sure its competitiveness and operational capacity for the future. But they have to handle the current situation.
As per recent reports, the number of vessels waiting to cross Panama Canal is around 150 & the current waiting time to cross the Canal is nearly 3 weeks.