The average wait time for unbooked vessels in the Panama Canal increased between 44% and 59% in August as a prolonged drought restricted daily transit and vessel drafts.
The Panama Canal Authority began imposing restrictions earlier this year to conserve water. Only 32 ships with a draft of 44 feet are now allowed to pass each day, compared to 36 under normal conditions with a maximum draft of 50 feet.
The restrictions have caused bottlenecks at both ends of the canal, driving up freight rates and forcing some ships to divert to avoid delivery delays, especially those without priority of passage.
According to the Panama Canal Authority, the average wait time for the southbound transit in August was 8.85 days and 9.44 days for the northbound passage, compared with 5.56 and 6.55 days, respectively, in July.
Longer waiting times for general cargo ships, dry bulk carriers and tankers transporting LPG. Container ships, passenger ships, refrigerated cargo ships and vehicle carriers were less affected, the data showed.
The backlog of ships fell to 117 on Friday from a peak of more than 160 ships in early August, the data showed.
"To ensure the Canal remains open to world commerce, the Panama Canal Authority has implemented strategic measures over the past few months...to mitigate the effects of climate change and the ensuing dry season," the Canal said this week. Canal officials said the measures were expected to last at least 10 months.
Panama has seen a slight increase in rainfall over the past two months, causing the canal's water levels to stabilize after months of sharp drops. However, experts say the rainfall has not been enough to raise water levels in waterways or alleviate the drought. The waterway is estimated to account for 5% of global trade.
"While forecasts have improved in the near term, water levels in the Panama Canal are likely to remain unusually low for months to come," said Isaac Hankes, senior weather analyst at London Stock Exchange Group.
Recently, a shipper paid an additional $2.4 million to avoid delays by jumping in line to transit through the Panama Canal...
