The global shipping artery, the Panama Canal, is suffering from unprecedented drought and dry water since records began in 1950, which not only led to a significant decline in the capacity of the Panama Canal, but also led to the passage of the Panama Canal container ships facing increasingly serious delays!
Data shows: in August the first week, each ship in the Panama Canal average delay time has been as high as 15 to 19 days!
It is understood that due to the "unprecedented" drought, the Panama Canal Authority reduced the maximum draft of its new Panamax lock by about 2 meters and reduced the daily maximum number of ship crossings by 20%-from July 30 Starting from the 30th, the daily number of ships passing through the canal from 36-38 to 32.
Operating conditions of the change caused all segments of the ship are facing delays, ship tracking data show that the Panama Canal on both sides of the waiting for the ship has been lined up!
"The Panama Canal delays are a reminder of the urgent need to address climate change. Shipping is one of the most vulnerable to climate change impacts and we need to take action to reduce emissions and mitigate risks," dry bulk shipowner and operator Sagitta Marine managing director Thomas Zaidman commented.
While Panama has resumed rains, the authorities are unlikely to make any upward revisions to draft or transit numbers anytime soon, as this year's El Niño weather phenomenon will bring drier weather to the country later in the year.
In fact, the Canal Authority has admitted that if the situation continues, next year it could lose up to 0.2 billion dollars in revenue.
It is reported that by the canal dry water and through the impact of the capacity drop, last week, Evergreen shipping a ship named Ever Max, capacity of 17312Teu container ship through the Panama Canal, not only paid 1.5 million U.S. dollars in tolls, but also forced to Balboa port (Balboa) unloading 1400 Teu cargo to meet the Panama Canal 13345 Teu's maximum draught limit.
Freight rate platform Xeneta's principal analyst Peter Sand said: "The Panama Canal is really an uncertain factor in the container shipping market at present, because it may have a potential impact on freight rates and US imports from the Far East."
According to Freight Forwarding Flexport Inc. Nathan Strang, the head of maritime transport, said that the canal's draft restrictions will greatly reduce the available space on container ships of most shipping companies, which means that more ships will be needed to transport the same amount of cargo, which may increase the waiting line time for ships to pass.
Strang said some shippers will have to split heavier cargo into two containers instead of one, and ships carrying heavier cargo will be more affected. He said the measures could cost importers and retailers through the Panama Canal an additional $1500 per container.
According to a report, due to the daily transit of the number of ships is limited, the canal authority recommends that shipowners apply in advance through the canal time period, which means that soon they must participate in transit time "auction", and these auction prices have been more than 350000 dollars.
Container shipping companies such as CGM (CMA CGM) and Hapag-Lloyd (Hapag-Lloyd) have responded to canal restrictions and congestion-with surcharges! Canal surcharges ranging from $300 to $500 per TEU have been added.
Shipping companies levy Panama Canal surcharge
Dafei Ship announced that from June 1 and September 1, the Panama Canal surcharge PCC(PANAMA CANAL CHARGE) will be continuously increased, with each increase of 300 USD/box. The specific charging standards are as follows:
In May, Hapg-Lloyd issued a notice stating that lower-than-normal water levels in Gatun Lake had imposed severe draft restrictions on ships passing through the Panama Canal. Therefore, from June 1, 2023, the Panama Canal surcharge PCC(PANAMA CANAL CHARGE) will be imposed on all goods transported from East Asia to North America.
details of the charges are as follows:
Severe drought forced the Panama Canal to introduce shipping restrictions, these measures not only mean that container ships want to pass through the Panama Canal must reduce loading and pay higher costs, but also expected this summer through the Panama Canal transport costs will further rise, goods or will face delays.
Source: one shipping