Shipping companies are opening their wallets in desperate attempts to expedite cargo transit through the Panama Canal, which is grappling with an unparalleled drought, resulting in its lowest water levels since the mid-1900s.
The consequence has been a substantial reduction in the canal’s transit capacity, leading to a backlog of dozens of ships eagerly waiting for passage.
Approximately 80 ships intending to traverse the canal connecting the Pacific and Atlantic oceans are now grappling with significant delays, resulting in financial losses for businesses. This predicament is particularly impacting the trade of energy, consumer goods, and food.
While the typical transit time through the 50-mile-long canal is 8 to 10 hours, the current situation has led to ships waiting in line for 1 to 2 weeks, depending on their destination. This stands in stark contrast to the several weeks it would take to circumnavigate South America’s Cape Horn.
In response to the extended delays, some companies have opted to bypass the queue by paying exorbitant fees, sparking fierce competition among vessels. Source: Fox Weather
