The transit restriction on the Panama Canal has been extended by one year.
Vita gazette- It has been reported that the duration of the passage limitation applied due to drought in the Panama Canal, which connects the Atlantic Ocean to the Pacific Ocean, has been extended by one year.
Temperatures and drought also hit the global strategic channel Panama. A new statement came from the authorities regarding the Panama Canal, which has been experiencing its driest period for over a century and needs rainwater. Authorities announced that the passage of ships through the canal would be limited for another year due to the drought reducing the water level. Ilya Espino, Deputy Director of the Panama Canal Administration, told the press that the transit restriction would apply if the rains in September, October and November do not raise the water level in the canal basin.
“While we cannot control nature, we can adapt our operations to ensure a competitive vessel flow. Freedom of choice is vital. We recognise that our customers have choices, and we must ensure that our services remain the best choice. Customers temporarily choose another route,” the Panama Canal Authority said in a written statement. “We respect and understand their decision if they choose it,” the information was used.
It is stated that while more than 200 ships are stranded on the 80-kilometre-long waterway connecting the Atlantic to the Pacific, some companies are looking for an alternative route. According to experts, restrictions that increase transportation costs for firms may put more pressure on consumer goods prices. On July 30, it was decided to limit the number of ships crossing the Panama Canal to 32 per day.
The permanence of the transit limits will probably give rise to the creation of bottlenecks at the entrance to the two doors of the passage. All the more so since, Espino admitted, the authority is experiencing an increase in the arrivals of ships, probably linked to the fact that “December is approaching, and therefore the goods for Christmas are moving rapidly”.
According to data updated in real-time by the authorities, 125 ships are waiting to transit along the canal, 57 of which have reservations.