(Reuters) – The Panama Canal said on Tuesday it could further reduce the maximum amount of vessel transits authorized per day if a drought that has hit the waterway this year continues.
The canal began restricting vessel draft and authorized daily passage earlier this year to conserve water, which have triggered a backlog of ships waiting to pass the key global waterway, which handles an estimated 5% of world trade.
The measures have contributed to more expensive freight costs ahead of the approaching Christmas season.
Up to 32 vessels are currently authorized to pass every day, from 36 ships in normal conditions. Vessel draft was also limited earlier this year to a maximum of 44 feet, from 50 feet.
The head of he Panama Canal Authority, Ricaurte Vasquez, said the waterway would opt for reducing daily transits if needed, before planning any further cut to authorized vessel draft, which affects shippers the most.
Read the full article here