Wait Times For The Panama Canal Surge By More Than 40%! Pushing Up Shipping Costs...

The average wait time for unbooked vessels in the Panama Canal increased between 44% and 59% in August as a prolonged drought restricted daily transit and vessel drafts.

The Panama Canal Authority began imposing restrictions earlier this year to conserve water. Only 32 ships with a draft of 44 feet are now allowed to pass each day, compared to 36 under normal conditions with a maximum draft of 50 feet.

According to the Panama Canal Authority, the average wait time for the southbound transit in August was 8.85 days and 9.44 days for the northbound passage, compared with 5.56 and 6.55 days, respectively, in July.

The backlog of ships fell to 117 on Friday from a peak of more than 160 ships in early August, the data showed.

"To ensure the Canal remains open to world commerce, the Panama Canal Authority has implemented strategic measures over the past few months...to mitigate the effects of climate change and the ensuing dry season," the Canal said this week. Canal officials said the measures were expected to last at least 10 months.

Panama has seen a slight increase in rainfall over the past two months, causing the canal's water levels to stabilize after months of sharp drops. However, experts say the rainfall has not been enough to raise water levels in waterways or alleviate the drought. The waterway is estimated to account for 5% of global trade.

Recently, a shipper paid an additional $2.4 million to avoid delays by jumping in line to transit through the Panama Canal...