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Revitalizing Global Trade: The Panama Canal Lifts Restrictions
(MENAFN- The Rio Times) The Panama Canal, a pivotal artery for global trade, is now lifting restrictions that had created a bottleneck for maritime traffic. This change follows the stabilization of water levels after a severe drought.
Ricaurte Vásquez, the canal's administrator, announced an increase in the draft to 50 feet. Consequently, the canal can now accommodate 36 ships per day.
Previously, during the height of the drought, the canal's capacity was reduced to 24 daily transits. Recent rains have raised water levels in Lake Gatún , part of the canal's system.
The authority anticipates continued rainfall through November, further elevating water levels. Under normal conditions, the canal manages about 3% of global maritime commerce.
This includes handling 46% of containers moving from Northeast Asia to the U.S. East Coast. Last year, the canal generated nearly $5 billion, marking it as Panama's primary revenue source.
The drought, intensified by last year's El Niño , led to unprecedented daily transit restrictions. To adapt, the canal authority initiated auctions for transit slots.
This particularly impacted shipments dependent on timeliness, such as liquefied natural gas and petroleum gas, prompting some shippers to choose alternative routes.
The easing of restrictions aligns with efforts to maximize ship loads, conserving water while maintaining tonnage.
Panama Canal's Proactive Measures
For the future, the authority is set on avoiding daily transit restrictions for the 2025 dry season. They are considering long-term reservation slots for time-sensitive shipments to ensure timely arrivals.
Vásquez mentioned ongoing feasibility studies for a dam on the Indio River, about 65 kilometers west of Panama City.
This dam would augment the water supply critical to both the canal and nearly half of Panama's population.
If approved, the project would require four years and cost about $2 billion. Community consultations are expected to last between 18 and 24 months.
As the canal prepares for potential future droughts triggered by El Niño, these proactive measures are vital.
They not only underscore the canal's resilience but also its indispensable role in sustaining global trade.
Ricaurte Vásquez, the canal's administrator, announced an increase in the draft to 50 feet. Consequently, the canal can now accommodate 36 ships per day.
Previously, during the height of the drought, the canal's capacity was reduced to 24 daily transits. Recent rains have raised water levels in Lake Gatún , part of the canal's system.
The authority anticipates continued rainfall through November, further elevating water levels. Under normal conditions, the canal manages about 3% of global maritime commerce.
This includes handling 46% of containers moving from Northeast Asia to the U.S. East Coast. Last year, the canal generated nearly $5 billion, marking it as Panama's primary revenue source.
The drought, intensified by last year's El Niño , led to unprecedented daily transit restrictions. To adapt, the canal authority initiated auctions for transit slots.
This particularly impacted shipments dependent on timeliness, such as liquefied natural gas and petroleum gas, prompting some shippers to choose alternative routes.
The easing of restrictions aligns with efforts to maximize ship loads, conserving water while maintaining tonnage.
Panama Canal's Proactive Measures
For the future, the authority is set on avoiding daily transit restrictions for the 2025 dry season. They are considering long-term reservation slots for time-sensitive shipments to ensure timely arrivals.
Vásquez mentioned ongoing feasibility studies for a dam on the Indio River, about 65 kilometers west of Panama City.
This dam would augment the water supply critical to both the canal and nearly half of Panama's population.
If approved, the project would require four years and cost about $2 billion. Community consultations are expected to last between 18 and 24 months.
As the canal prepares for potential future droughts triggered by El Niño, these proactive measures are vital.
They not only underscore the canal's resilience but also its indispensable role in sustaining global trade.
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