Adapting to the Panama Canal Drought: How Nelson International Can Help

The Panama Canal, an essential facilitator of global maritime trade, is grappling with a severe drought, leading to implications for global shipping. The largest vessels have already started to reduce their drafts or lighten their loads to adapt to the changing conditions. As water levels in Lake Gatun, one of the primary lakes feeding the canal, continue to decrease, further restrictions on ships’ drafts and cargo loads are anticipated.

Nelson International, with its expertise in global logistics, can guide businesses through this evolving scenario. We closely monitor developments like the Panama Canal situation to help mitigate potential setbacks for our clients.

Several ocean carriers have introduced new fees for goods shipped through the Panama Canal route due to these restrictions, potentially resulting in a 40% reduction in cargo space for some shippers. Despite these challenges, Nelson International offers innovative solutions to optimize cargo loads and mitigate higher fees.

With the intensifying drought and likelihood of further restrictions, businesses may need to consider alternative routes for their cargo. Asian-to-US cargo could potentially reroute through the Suez Canal or ports in southern California. Nelson International’s expertise in global shipping can help streamline the transition.

As the below-normal rainfall in Panama is expected to continue, exacerbating the canal’s issues, Nelson International stands ready to assist businesses in adapting to these changes. Regardless of the challenges on the horizon, we remain committed to ensuring your business sails smoothly.