Panama Canal Update: Confirmation on diversion plans avoiding the canal

Image: Martime-Executive

Carriers are diverting ships away from the Panama Canal due to the Panama Canal Authority's phased reduction in daily transits, impacting shipping routes. United Heavy Lift, a major ocean transportation provider, estimates its vessels won't transit the canal until May-June 2024. Other carriers, including Stolt Tankers and MSC, are rerouting ships via the Suez Canal or other routes due to the Panama Canal's increasing unreliability. The canal's dry bulk and LNG segments are most affected, with daily transits reduced by nearly half. Container carriers face potential delays and increased costs, prompting MSC to impose a $297 per container Panama Canal Surcharge. Delays are expected to worsen, with carriers paying $235 million in auction fees in 2023. The Panama Canal Authority urges vessel reservations to avoid indefinite delays.

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