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As predicted, the rainy season is arriving at the Panama Canal but is of little help in the immediate future as water levels are ultra-low. Hopefully, they will rise sufficiently to clear up the waterway in time for shipping’s busy time of year.
In January, just about 21 vessels crossed daily the canal, in the meantime, the 7-day moving average reached 25 last week, still short by 10, i.e. 35 is the historic average. Port authorities are expected to lift the limitation to around 30 for May and 32 starting in June.
With the oncoming rain season, Gatun Lake which helps supply the canal with water isn’t projected to be replenished to healthy levels of the recent past, it is forecast to recover somewhat over the next two months.
S&P Global Market Intelligence said in a research note Monday that the added rainfall combined with more ship crossings “should steadily lift the restrictions to global trade resulting from canal disruptions since last year, which is particularly important ahead of the peak shipping season” running from about July to September.
Maersk said earlier this month that its OC1 container-line service can begin to use the canal again starting May 10. The return to its usual rotation means an end to the current workaround established in mid-January that involved bypassing the canal using rail transit.
But the full return to normal operations at the Panama Canal may take years, according to an official with the canal authority.
Knowledge is power.
