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Check out this incredible view of stranded boats at Alhajuela Lake during the summer drought! Located in Colon province, just 50 km north of Panama City, Panama, this lake is one of the primary water sources for the Panama Canal locks and is currently experiencing its lowest water level in years. The striking image was captured on April 21, 2023, by Luis Acosta, an Afp photographer.
As a result of the Panama Canal’s drought conditions, shipping giant Maersk has announced a major change for its Oceania (Australia and New Zealand) freight clients. Due to ongoing low water levels, vessels with cargo from Oceania will no longer be transiting the canal, opting instead for a “land bridge” service.
This new approach will involve vessels calling at the Ports of Balboa, Panama, on the Pacific side to drop off and pick up cargo, as well as utilizing the Port of Manzanillo, Panama, on the Atlantic side. From there, containers will be moved via existing rail across Panama to be transferred to another vessel. Maersk’s updated service plan will cover two transits per week.
The severe drought’s impact on water depth and weight restrictions in the Panama Canal has led to additional container surcharges for shippers in recent months. Maersk’s client advisory noted that the company is working to minimize impacts on its customers despite the necessary changes in operations.
Importantly, Maersk emphasizes that there will be no delays for Northbound cargo destined for Philadelphia and Charleston, including shipments for companies like McDonald’s, which imports Wagyu Beef from Australia using this route. However, Southbound vessels may experience some delays, and Maersk has also eliminated the shipping route to Cartagena, Colombia.
For those curious about the Panama Canal Authority’s response to the drought, it has increased the number of transit slots to 24 daily this month, though this is still much lower than the daily transits of 36 seen previously.
These changes come at a time when the Panama Canal is expected to receive additional vessel traffic as ocean carriers avoid the Red Sea due to the ongoing Houthi attack risk. To read more about the impact of the drought on the Panama Canal and Maersk’s response, click the link below.