Panama Canal Restrictions are Delaying Shipments to the East Coast

Panama Canal Restrictions are Delaying Shipments to the East Coast

It was less than two months ago shipments to the East Coast through the Panama Canal were not expected to be serious delayed. However, this has apparently changed.

Because of restrictions imposed by the Panama Canal Authority (ACP) in late May, some import shipments from Asia to the U.S. East Coast were expected to be delayed as the annual Christmas season traffic gridlock occurs.

“Christmas goods urgently shipped from Asia into the East Coast, may not arrive in time,” British-American Shipping CEO Paul Snell tells AJOT.com

Faced with an unprecedented drought this year, the ACP announced a cut to the draft restrictions for ships transiting its larger neopanamax locks by six feet. Transits were also slashed by 20% to just 32 vessels a day. 

Last September PhilaPort reported liner operators should reserve their transits ahead of time and have a priority to pass the many bulkers and tankers waiting in the anchorages at both sides of the waterway.

While current restrictions only affect vessels sailing at deep drafts, leaving out the conventional reefer segment, the logistic issues that are expected to arise during holiday season could still show an impact on fruit imports.

PhilaPort notes there will be vessels out of sync, out of alignment, and potentially all arriving at one time. So, it will be harder to control the schedule and it will be harder to maintain schedules both in and out of the U.S.