Panama Canal Works To Increase Bandwidth
The Panama Canal Authority is intensifying efforts to restore capacity and accommodate deeper vessel drafts as the region enters its rainy season. While the canal is returning to normal operations, authorities caution about the enduring impact of climate variability and ongoing water security challenges. Concerns over vessel draft, particularly for large containerships and gas carriers, are easing. By the end of May, the Authority had raised the maximum authorized draft to 45 feet. Recently, this was increased to 47 feet, effective immediately, and will further rise to 48 feet by July 11.
A year ago, the Panama Canal was operating under a 44-foot draft limit, implementing measures like reducing daily transit slots and water conservation efforts such as double locking. This necessitated transshipment of containerships' cargo across the isthmus by train and diversions for gas carriers. With the canal now moving towards higher draft levels, these interim measures are no longer necessary, having previously operated at drafts up to 50 feet during periods of robust water levels. Furthermore, the Authority plans to increase daily transits to 35 starting August 5, progressing incrementally from 32 to 33 on July 11 and reaching 34 on July 22. Larger Neopanamax locks will be restored to facilitate 10 daily transits.
These developments coincide with the eighth anniversary of the expanded canal’s opening on June 26, 2016. Since then, more than 25,000 vessels have transited the Neopanamax locks, with 1,799 vessels passing through between October 2023 and May 2024 despite operational restrictions, predominantly containerships.
In a recent analysis, the U.S. Energy Information Administration predicts increased rainfall during the ongoing rainy season, potentially benefiting operations due to an anticipated La Niña effect. However, the Authority remains cautious about long-term water challenges, emphasizing the need for sustainable solutions. They highlight ongoing efforts to explore alternative water sources from Panama's 51 watersheds and lakes, alongside projects aimed at enhancing storage capacity to ensure sufficient water for both the population and canal operations.
Recognizing the canal’s pivotal role in global commerce, the Authority underscores its significance, with 13,000 to 14,000 vessels transiting annually. The waterway connects 170 countries and approximately 1,920 ports worldwide, supporting over 180 shipping routes.
