Significant congestion has hit the Panama Canal as a result of ongoing draught conditions that have been effecting the region since spring. Water conservation efforts implemented in July have led to booking slot reductions through the canal, creating severe backlog. There are 154 vessels currently waiting to cross the canal. As a result of this situation, freight flowing through the canal is expected to be delayed.

The Panama Canal holds significance as a pivotal trade route for US shippers bound for Gulf and East Coast Ports. US import and export cargo account for about 73% of the Panama Canal’s traffic, and about 40% of all US container traffic travels through the canal. Carriers are taking a variety of measures to address the situation, including routing more vessels via the Suez Canal or by utilizing services via the US West Coast. 

RIM logistics, ltd. will continue to closely monitor the situation and keep you advised of any updates as they become known. Please contact your RIM representative should you have any questions or need additional information.