This article is taken from USDA's June 22 Grain Transportation Report...
In addition to previous draft restrictions starting in March, the Panama Canal (Canal) has issued new restrictions in June, affecting both container and bulk vessel transits.
According to the Wall Street Journal, Panama is having its worst drought in over a century, and water levels in Gatún Lake—the water source for the Canal—could hit record lows by July.
Starting July 19, draft restrictions within the Canal’s Neopanamax locks (normally, 50 feet) will be reduced to 43 feet.
The Neopanamax locks are used by large container vessels (Grain Transportation Report, May 25, 2023), and some container ocean carriers have imposed per container surcharges for services transiting the canal.
Also, beginning July 19, draft restrictions within the Canal’s older Panamax locks (normally, 39.5 feet) will be reduced to 38.5 feet.
This restriction will affect the largest bulk vessels carrying U.S.-originated grain.