Due to a severe drought that is expected to last until 2024, the Panama Canal Authority (ACP) has announced the reduction of allowable ship crossings to 31 from 32 as of November first. Such passages were 36 daily during normal operations.
The ACP said it “finds it necessary to implement additional changes” due to the ongoing water crisis.
New restrictions will allow nine ships to pass daily through the Neopanamax lock and 22 through the Panamax lock, while transit reservation quotas will be adjusted to a maximum of 30 per day.
Ships that usually cross the canal in two-and-a-half days have had to wait more than nine to make the journey. On October 2, the line-up of vessels waiting to cross the canal totalled nearly 100 ships.
The situation has become so dire that some shipping firms have paid millions of dollars to buy an earlier place in line.
As an example, gas-shipping company Avance Gas said last month that it had put up $2.4 million to win an auction held by the canal authorities to jump ahead in the line. Fees for passing through the canal can range anywhere between $150,000 to over $1 million, depending on the size and capacity of the vessel.
