The Panama Canal Authority (PCA), which normally handles about 36 ships per day, announced on October 30th that it will gradually reduce the number of vessels to 18 per day by February 1st in order to conserve water heading into the dry season. Panama had the driest October on record due to a drought caused by the El Niño weather phenomenon. Water levels within the canal are dependent on fresh water intake from the Gatun Lake in the center of the canal, which is at historical dry-season lows.

It is unlikely that the traffic in the canal will increase until after the start of the 2024 rainy season, which historically starts in the middle of the year, according to meteorological experts. This year, there have been some cases where ships have had to wait as long as 20 days to get through the canal. As a result, vessel movement will be limited daily, which may trigger delays while vessels wait to transit the canal. RIM is assessing the situation carefully and can recommend alternatives for cargo that may be impacted by transit delays during this time.

Please contact your RIM representative should you have any questions or need additional information.