German carrier flags mounting disruption to global trade lanes as Panama Canal Authority adds new vessel transit limit
Shipping giant Hapag-Lloyd has warned of “ongoing operational challenges” at the Panama Canal and adverse consequences for global shipping, after the waterway’s state-owned operator proposed a further limit on traffic to contend with the effects of El Niño.
Under its latest plan, only 29.5 vessels – an average not literal figure – will be allowed to transit daily. That follows a similar cut from 36 to 32 vessels in September.
“Due to significantly reduced water levels and the effects of the El Niño weather pattern, the Panama Canal Authority (ACP) has introduced new restrictions to conserve freshwater and maintain safe operations,” the shipping line noted. “These measures follow a sharp decline in water inflows and a nationwide state of emergency in Panama.”
The restrictions present a number of operational challenges, it added, making it more difficult to secure transit slots, reducing the size of vessels that can pass through the canal, and creating “significant delays across multiple trade lanes”.
Priority auctions, surcharges, and alternative routing were also driving up operating costs, it said, while shipping operators were finding their ability to adjust schedules and reroute vessels was limited.
To minimise disruption and maintain service reliability, Hapag-Lloyd said it would maintain “close communication” with ACP and local partners, and introduce “feasible recovery actions” where possible.
