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From sea to rail: Panama Canal drought to reshape shipping routes?

13 Jan '24
2 min read
Pic: Adobe Stock
Pic: Adobe Stock

Insights

  • Drought-induced restrictions at Panama Canal are impacting global shipping, thus affecting textile and garment trade.
  • With Gatun Lake's water levels low, the Panama Canal Authority has limited vessel size and weight.
  • Shipping companies, including Maersk, are resorting to rail transport as an alternative.
  • This disruption follows the recent Red Sea crisis.

*.*pt"> Drought conditions in the Panama Canal have exacerbated the challenges faced by global shipping. The shipment of cotton and readymade garments is likely to be impacted due to recent limitations imposed on vessel size and weight by the Panama Canal Authority (ACP). 

*.*pt"> These restrictions, necessitated by low water levels in Gatun Lake, the principal reservoir facilitating ship transit through the canal&#**;s lock system, have compelled shipping companies like Maersk to seek alternative transportation methods. 

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