Panama Canal could reduce even more daily transits if drought continues

The head of the authority of the Panama Canal, Ricaurte Vasquezsaid Tuesday that the maximum number of authorized vessel transits per day could be further reduced if the drought that has plagued the waterway this year continues.

The canal began to restrict the draft of ships and authorize daily passage at the beginning of the year to save water, which has caused a traffic jam of ships waiting to pass through this key global navigable waterway, through which it is estimated that the 5-6% of world trade.

The measures have contributed to increasing freight costs due to the proximity of the Christmas season.

Currently, up to 32 ships are authorized to pass through each day, compared to 36 under normal conditions. Ships’ draft was also limited earlier this year from 50 feet to a maximum of 44 feet.

Vasquezsaid that the waterway would choose to reduce daily transits if necessary, before contemplating a new cut in the authorized draft, which is what most affects transporters.

Risks due to lack of water

The last administrator of the Panama Canal He issued a warning on Friday, at a time when the maritime route has had to restrict transit due to the drought.

“Right now I see that the situation is manageable, but we do have to show the industry that we are taking definitive steps to address the water problem and that for me is key, because if not we are going to be out of this business.“, said Jorge Quijanoformer administrator of the Panama Canal.

The water crisis has caused restrictive measures in the transit and draft of ships, causing lines of vessels waiting to cross the road.

He Panama Canal It uses rainwater to move boats in the locks and obtains it from a hydrographic basin through the Gatún and Alhajuela lakes.

However, this basin, which also supplies drinking water to the country, was last modernized in 1935, when there were about 6,000 transits through the canal, less than half as many as now.

“Right now don’t even think about whether there is more water, let’s not think about that right now. Let’s concentrate on looking for that water to survive and maximize the three locks we have today and for that we need more water“he added Quijano.

The Panama Canal Authority is carrying out studies to look for new sources of water, but the restrictions have raised fears that shipping companies will decide to change routes to transport their merchandise. Overwhelmed by the lack of water, the road will maintain restrictions on the passage of ships for a year.

“The channel is not going to close. When I say it’s going to affect the business, it’s not that it’s going to close. Ships always pass here. The problem is that; Are we going to be able to generate US$2.5 billion in profits to give to the State? Or are we simply going to lower that to 1.8 billion or something like that because we don’t have water?”, concluded the former Canal administrator.

Up to 6% of world maritime trade passes through the 80-kilometer canal. Its main users are the United States, China and Japan.

With information from Reuters and AFP