This article is written by Austin Garcia
The Panama Canal, a vital shipping route, has faced severe drought. This has lasted for the past 11 months. The canal stretches 50 miles across the narrow Panama isthmus. It was finished and opened in 1914. George Washington Goethals led this effort.
The Panama Canal Authority (ACP) had to cut daily transits. They also lowered draft levels since May. This was due to the ongoing drought. The El Niño weather pattern made it worse. Many global merchant ships now bypass the canal. This is because of long waits and high fees.
Improving Conditions at the Canal
However, things are looking up. Three weeks ago, the ACP added three transit slots. This was for its Panamax locks. The total daily maximum transits are now 27. This is still more than 10 below normal. But it clearly shows improvement.
Maersk, a big Danish shipping company, confirmed this today. They announced they would bring back a service. This service had used a rail land transit. It crossed Central America during the drought’s peak. Now it will go through the canal again. This proves water levels are improving.
The transit limits have cut tonnage by one-third. Only 46 ships are waiting to cross. This is a big drop from over 160 last August. The ACP’s latest forecasts are good. Water depths at Gatun Lake should rise fast. This crucial lake is in the middle of the canal. The rainy season is starting in Panama.
Port of Houston’s Role
In 2021, the Port of Houston made big upgrades. These greatly expanded its ocean freight capacity. The port can now handle more cargo. This strengthened its position in global shipping. With recent events, the route to Houston, Texas, may return. This is very likely.
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