Panama Canal Announces Shipping Restrictions

Affected by the drought, the Panama Canal has introduced new restrictions.

From May 24, neo-Panamax vessels (the largest ships to pass through waterways) will be allowed a maximum draft of 44.5 feet (13.56 meters), compared with the previous limit of 45 feet; by May 30, the draft limit will be reduced again 44 feet.

The adjustment could reduce cargo on some container ships by as much as 40%. Container ships trying to pass through the Panama Canal must lighten their load and pay higher fees.

In response to the canal's restrictions, at least four shipping lines have announced weight limits or imposed container fees of $300 to $500 per container from June 1 in response to the canal's measures.

The cost of transporting goods through the Panama Canal is expected to rise further this summer, and cargo may also face delays.