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

Resilinc

What’s happening in the Panama Canal 2023? The Panama Canal, a crucial 50-mile waterway that six percent of all global trade passes through, faced major traffic jams this month due to a historic drought. How long will the Panama Canal drought last? Which countries are impacted by the Panama Canal drought?

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This Week in Logistics News (January 20 – 26)

Logistics Viewpoints

Emergency vehicles, for example, would be exempt, and the California Highway Patrol could authorize the system’s disabling in certain other cases. The Panama Canal has faded from the headlines amid all the focus on the Red Sea. But fallout to global supply chains from Panama’s drought is far from over.

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Climate Change and the Supply Chain

Logistics Viewpoints

These come from using gasoline for driving a car or coal for heating a building, for example. For example, the Inflation Reduction Act (IRA) was signed into law a year ago this week. These are just a few examples of how climate change can impact supply chains. The current wait time to cross the canal is now around 21 days.

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The VF Corporation Invested in Supply Chain Agility Before COVID Made “Agility” the New Buzzword

Logistics Viewpoints

Those goods flowed through three regional hubs – in Singapore, Panama City, Panama and Stabio, Switzerland – to 49 distribution centers, 24 of which VF operates. China, for example, only produces 14% of their total units, only 3% of those units end up being exported to the United States and 2% to EMEA.

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6 Things to Consider as You Plan Your 2016 Budget

Talking Logistics

For example, the China-owned COSCO and China Shipping Container Lines (CSCL) have confirmed their merger. Panama Canal Expansion. The Panama Canal expansion, slated for completion this spring, will impact logistics in a big way. Those uncertainties are considered the root of many consolidations. Free Time and Chassis.

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November 7, 2023 Update

Freightos

The Panama Canal Authority will reduce daily transits to about half their normal level over the next three months as the drought there stretches on, raising the possibility of reduced capacity and higher rates to the East Coast or diversions to the West Coast.

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Current State of the Capacity Crunch

GlobalTranz

Expansion of the Panama Canal Will Increase Incoming Ocean Freight. Part of the discussion on the current state of the capacity crunch must include a discussion on the Panama Canal. As a result, most carriers, including local and 3PL carriers, are also increasing the size of their fleets.

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