Panama Canal Draft Restrictions Could Cause Delays

As we anxiously await the opening of the new locks expanding the capacity of the Panama Canal, a project that is two years behind schedule and millions of dollars over initial costs, the “old” locks are heading into draft restrictions.

Shipments going through the Panama Canal could see delays beginning next month. The Panama Canal Authority has set draft restrictions due to the El Nino weather phenomenon that has caused water levels to drop well below average. As of now, the Authority has notified the shipping community of a third draft restriction of 11.59m (38ft) effective May 9, 2016. All vessels loaded after April 11, 2016, are required to comply with these restrictions. The Authority stated that these temporary and preventative restrictions are set to make sure travel and operations through the canal continue to be safe. The Panama Canal will continue to monitor and manage the water levels, giving notice of changes of the draft restrictions at least four weeks in advance.

We are monitoring the situation and will work to mitigate any potential delays. The opening date of the new locks is planned for June 26, with test shipments in May. The Panama Canal has been serving international traders for over 100 years and we look forward to the eventual benefits of the expanded canal for all of our members.