Water-saving measures are severely affecting the capacity of the Panama Canal. United Heavy Lift (UHL) has said that the vessels it operates will be unable to transit the waterway until around May-June 2024.
HLPFI reported on November 15 that a delay to the start of the Panamanian rainy season significantly decreased the levels of freshwater in the canal’s reservoirs and the Panama Canal Authority is implementing measures to allow maritime trade to continue, while supplying water and hydroelectric power to the country.
UHL, which operates F-900 multipurpose heavy lift ships, said: “Unfortunately, the Panama Canal authorities have just announced that the situation is not expected to improve until after the dry season of December-April. Currently, they are only allowing top customers to transit the canal to maintain water levels. The auctions for transit slots are currently at exorbitant levels. Our vessel type and size will not be able to transit the canal in the foreseeable future. Based on current information from the canal authorities, we estimate that the earliest our vessel type and size will be able to transit the canal will be May-June 2024.”
This will have a large impact on the shipping industry in general. UHL said that voyages will be diverted via the Cape of Good Hope, the Suez canal, or Cape Horn, causing freight rates to increase.
