06 Dec Panama Canal Still Causing Delays
As previously notified, low water levels on the critically important Panama Canal have prompted the Central American country to reduce the number of vessels that pass through the key global trade route. Each day an average of 32 ships is allowed to pass through, which was cut down from the previous 36-40.
This restriction has created a backlog of ships waiting to traverse the route, which many companies favour, as it typically slashes the travel time between the Atlantic and Pacific oceans.
The Panama Canal Authority, which manages the waterway, said earlier this month that the measures were necessary because of “unprecedented challenge and a drought that had no historical precedence with regards to its severity.” Canal authorities said the restrictions for tankers could be held in place into next year.