Xenata chief analyst Peter Sand has stated that the low water issues currently hitting Panama Canal traffic will worsen in 2024. The challenges facing the canal will deepen as the El Nino effect in the first six months of that year will lower the water levels and extends waiting times.
Extended queues of ships at either end of the Panama Canal have been caused this year by the reduction in water levels. Restrictions on ships have seen an increase in the waiting times for large containerships, “rising sharply to 16-17 days, that is longer than it takes to transit the Pacific” Sand noted.
These challenges are expected to be over-shadowed by the mixed effects of El Nino and climate change that will see a “dryer than normal first half of 2024,” explained Sand. That impact will be stronger and more prolonged than this year’s effects according to Sand.
Source: seatrade-maritime.com
