Panama Canal water levels have decreased due to severe drought, forcing vessels to lighten their loads and pay higher rates.
A restriction in weight is occurring at one of the world’s most important shipping routes from May 24, followed by another decrease on May 29.
The Panama Canal Authority (ACP) reports the maximum draft allowed for vessels transiting the Canal from May 24 would be reduced to 13.56m or 44.5 ft.
Effective May 30, the maximum draft allowed for vessels dropped to 44 ft, the authority noted.
The canal is supplied by two nearby lakes which received 50% less rain than usual between February and April. Lack of rain is threatening to bring levels to historical lows in July.
Experts have warned new restrictions will likely cause delays and freight cost increases as the Panama string capacities are reduced.
Hapag Lloyd already announced a PCC (Panama Canal Charge) of $500 per container effective June 1 on all cargo loaded on its Asia to US east coast sailings via the canal.
The canal, which manages around 5% of annual global maritime trade, has been struggling with drought ever since it expanded in 2016 to allow larger ships to pass through its locks.