Due to the lack of rain, the passage of ships through the Panama Canal has slowed down, and the queue of tankers waiting in the bay has grown.
The Panama Canal limited the number of ships passing through it. This is due to the lack of rain. The Guardian reported this.
It was noted that during the height of the rainy season, which fell this year in October, the region received 41% less rain than normal. The water level in the canal on December 22 approached the lowest level in the administration’s record-keeping history. The El Niño climate phenomenon played a major role in reducing water levels.
This year, due to the lack of rain, ship passage through the Panama Canal has slowed and the queue of tankers waiting in the bay has grown. Previously, the canal could handle 36 ships a day, but now the administration has lowered the allowed number to 22. By February next year, only 18 ships a day will be able to pass through the canal.
Ships can wait weeks in queues, with some paying up to US$4 million to get ahead of the queues, while other shipping companies are forced to avoid the route, delaying their voyages by days or weeks . Each of the listed options means serious financial costs for traders.
Nitin Chopra, maritime risk consultant at Allianz Commercial Asia, said that in the long term, there is expected to be a significant increase in the cost of goods, which will affect consumers.
The new restrictions on passage through the Panama Canal will also increase pressure on global supply chains, as repeated attacks by Yemen’s Houthis on ships along the Red Sea trade route have so that many companies avoid the Suez Canal.
We remind you that the Norwegian ship Strinda was hit by a missile in the Red Sea near Yemen.
It was earlier reported that the cargo ship MV Glory carrying more than 65 thousand metric tons of corn from Ukraine to China ran aground in the Egyptian Suez Canal.
Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.