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Panama Canal Drought: Lower Water Levels, Higher Supply Chain Risk

Resilinc

Weight limits have also been adjusted, forcing some ships to unload and transport cargo to the other side of the canal via train—increasing transportation costs. The ACP recently stated they expect to maintain these restrictions for at least ten more months. The ACP also implemented “Condition 3” until September 2, 2023.

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100+ Supply Chain Crisis Statistics: Raw Materials, Covid-19, Labor Shortages, and More

ToolsGroup

Such measures include communicating with suppliers and customers , using demand shaping to overcome inventory shortages, seeking additional suppliers, and building more onshore facilities. The United States’ and Europe’s production of global semiconductors decreased from approximately 80% in 1990 to 20% in 2020. McKinsey ).

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When the Heavy Hand of Government is Not a Burden

MIT Supply Chain

One manifestation of this problem is that multiple ports on the east coast are deepening their approach channels in order to attract bigger cargo ships. The State of Ohio, for example, is buffering its PPE inventories, for example. The situation is exacerbated by local stockpiling.

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New Panama Canal Options: Running the Numbers with a TMS

TMC

When the expanded Panama Canal opened this June, a new set of routes became available for shippers and beneficial cargo owners (BCOs). These enterprises are no longer reliant on the Suez Canal route for shipping freight on Post-Panamax container vessels to the United States.

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