Luis Lazaro’s Post

For many of us, the Panama Canal is a vital element of a smooth supply chain. Over the past year, we've updated you several times on the challenges at the Canal, many of them related to droughts and water limitations that have negative impacts on the Canal's ability to process global freight from Asia to the US Gulf and East Coast ports. The Canal Authority is planning to build a new reservoir on the Indio River to address water shortages that have caused delays in canal operations. This $1.2 - $1.6 billion project is expected to take six years to complete, and it aims to ensure reliable water supply and maintain consistent vessel traffic even during droughts. It is a needed improvement, to be sure, but the six year wait is likely to be very uncomfortable. #supplychain #logistics #shipping #importexport #internationaltrade https://lnkd.in/e267Ncr4.

Panama Canal Plans to Solve its Water Woes With New Reservoir Can the Panama Canal prevent the issues due to drought? In 2023 and 2024 the Panama Canal drought issues affected cargo volume, which had ripple affects we could do without. These effects are causing higher rates in some cases and delays to shipping. I posted on the drought consequences several times this year, and it's economic effects. So it is interesting to see that an effective solution is in the works. Thanks to a new court ruling, Panama's government plans to future-proof the operation of the New Panama Canal against the prospect of prolonged droughts, which have slowed down commerce and caused backlogs because of competition for the limited water supply to run the locks. The Panama Canal locks depend upon freshwater from Gatun Lake in order to operate, and the larger new locks use about 50 million gallons per ship transit. In periods with little rainfall, the lake's level declines, and Panama is forced to choose between using the water for marine commerce or using it to supply the needs of local stakeholders. The Panama Canal Authority was forced to curtail the number of daily canal transits because of this challenge in late 2023, creating congestion on the key connector between the Atlantic and Pacific basins. Click on the link, or the image, to read the rest of this short article, which explains how they intent to do this. #shipping #maritime https://lnkd.in/d76K6s6t

There's a saying that it takes a long time to turn a big ship. Sometimes, it takes a long time to move it in a straight line, too, and that's the problem that has been been plaguing the Panama Canal in recent years. As shipping volumes have increased and ships have grown in size from Panamax to post-Panamax sized vessels, the canal has been hampered both by physical limitations as well as water shortages that have restricted the movement of ships. The canal has tried to keep up with various improvements and expansions, and the new reservoir project described here is needed. However, it probably isn't enough. At some point we're going to need another route or another pathway to accommodate the growing volume of goods shipped each year. One option might be the Interoceanic Corridor in Mexico. There may also be other options that some smart folks are thinking up, but we're going to need something. I'm particularly interested to see how Mexico's new President, an engineer, scientist, and a transportation sector expert, will view this issue as we transition from the AMLO era to the Sheinbaum era. #panamacanal #interoceaniccorridor #supplychain

𝐏𝐚𝐧𝐚𝐦𝐚 𝐂𝐚𝐧𝐚𝐥 𝐭𝐨 𝐚𝐥𝐥𝐨𝐰 𝟑𝟔 𝐝𝐚𝐢𝐥𝐲 𝐭𝐫𝐚𝐧𝐬𝐢𝐭𝐬 𝐛𝐲 𝐒𝐞𝐩𝐭𝐞𝐦𝐛𝐞𝐫 Consistently strong rains will allow the Panama Canal to accommodate 36 transits a day from September with the interoceanic waterway getting ever closer to maximum operating conditions. At its maximum, the canal can handle 40 ship transits a day, a figure that was eroded last year as months of record drought took their toll. In tandem, canal administrators were forced to cut maximum draft limits for ships transiting the waterway’s larger neopanamax locks by close to 2 m, something that has eased in recent months as rains have returned. The canal will increase daily transits to 35 slots after August 5. The Panama Canal Authority has given itself a six-year deadline to complete the construction of a giant $1.6bn new reservoir along the Indio river to help provide water security in the years ahead so that the vital waterway can maintain a minimum of 36 transits a day.

𝐅𝐮𝐫𝐭𝐡𝐞𝐫 𝐝𝐫𝐚𝐟𝐭 𝐚𝐧𝐝 𝐭𝐫𝐚𝐧𝐬𝐢𝐭 𝐢𝐦𝐩𝐫𝐨𝐯𝐞𝐦𝐞𝐧𝐭𝐬 𝐚𝐭 𝐭𝐡𝐞 𝐏𝐚𝐧𝐚𝐦𝐚 𝐂𝐚𝐧𝐚𝐥 The Panama Canal Authority (ACP) has announced another increase in draft and daily transits. The maximum authorised draft was raised by another 30 cm yesterday to 14.3 m, and will increase to 14.63 m on July 11. Additionally, a new booking slot for the neopanamax locks will be added beginning on August 5, bringing the total number of transits to 35 ships per day. The canal’s continued progression is informed by the current and projected water levels of Gatun Lake, and the arrival of the rainy season in the Panama Canal watershed. Despite the arrival of the rainy season, the challenge of water for Panama and the Panama Canal remains. Potential solutions include the identification of alternative sources of water from the 51 watersheds and lakes in Panama, along with projects that can increase storage capacity to ensure water availability for the entire Panamanian population and the canal’s operation. Since May last year, the ACP has had to cut back daily transits on the waterway as the nation fought a massive drought – the worst on record. The incoming new president of Panama has put water levels at the country’s canal as one of his most important items on his agenda. Jose Raul Mulino will take office for a five-year term from July. Interviewed by Reuters last month, Mulino said he would try and get lawmakers to approve a law enabling the Panama Canal to build large water reservoirs to combat droughts.

Panama Canal transits rise to almost normal levels as expansion work begins The Panama Canal is set to increase daily vessel transits to 36 by September, aiming to return to normal levels following significant rainfall in June and July. Although not officially announced, the Panama Canal Authority (ACP) indicated the likely increase. Typically, 36 to 38 vessels transit daily, with up to 42 under ideal conditions. The ACP has begun discussions with Panamanians affected by a $1.6 billion project to expand the canal's water catchment, including the Río Indio reservoir. The project might also involve additional smaller reservoirs to ensure water supplies for both the canal and residents. The expansion will boost daily transits by 11 and provide more drinking water. Talks with over 800 residents in 60+ communities revealed mixed reactions, with many willing to participate if their rights are respected. Approximately 13,000 people in 200 villages will be affected, including 2,000 who may need to relocate. The project, slated for completion in 2030, will require 18 to 24 months for social issue resolution and an environmental impact study. Construction is expected to start in 2026. The US Army Corps of Engineers is providing technical assistance. This expansion is crucial as Panama faced its second-driest year on record in 2023, leading to reduced daily transits and draft restrictions. The resulting congestion left about 100 ships waiting to pass through last August, with only 25 daily transits allowed at the lowest point. However, heavy winter rainfall has since eased these restrictions. #PanamaCanal #MaritimeNews #GlobalTrade #ShippingIndustry #InfrastructureExpansion #WaterManagement #ClimateAdaptation #SustainableShipping #CommunityImpact #RíoIndioReservoir #USArmyCorps #EnvironmentalImpact #PanamaLogistics Stay Informed: https://lnkd.in/eSR238ew

Panama to build new reservoir to ease water problems

A bit of positive maritime news today. The Panama Canal Authority plans to increase daily ship transits and maximum allowable draft based on a predicted increase in reservoir water levels over the next few months. Both transits and draft had been reduced following drought conditions last year. Daily transits have been down to 24 per day from a normal of 36. Drafts had been reduced to 44 feet from a max of 50 feet. h/t to gCaptain

Panama Canal to allow 36 daily transits by September. Consistently strong rains will allow the Panama Canal to accommodate 36 transits a day from September with the interoceanic waterway getting ever closer to maximum operating conditions. At its maximum, the canal can handle 40 ship transits a day, a figure that was eroded last year as months of record drought took their toll. In tandem, canal administrators were forced to cut maximum draft limits for ships transiting the waterway’s larger neopanamax locks by close to 2 m, something that has eased in recent months as rains have returned. The canal will increase daily transits to 35 slots after August 5. The Panama Canal Authority has given itself a six-year deadline to complete the construction of a giant $1.6bn new reservoir along the Indio river to help provide water security in the years ahead so that the vital waterway can maintain a minimum of 36 transits a day. https://lnkd.in/egqpHTff

Despite what some are saying right now, I do not believe that the Panama Canal will be drying up any time soon. Water levels at the Panama Canal have been rising faster than expected due to above-average rainfall. As of earlier this month, vessels with a draught of up to 14.63 meters will be allowed to transit, thanks to this positive change. However, the challenges aren’t over. Sure, water levels are improving, but they are still below the usual draught limits. To combat future water scarcity, the Panama Canal Authority (ACP) is initiating the construction of a new reservoir, as discussed in more detail in this article below. Located on the Río Indio, this new reservoir will connect via an 8.4 km concrete tunnel and is expected to have a capacity of 1.5 billion cubic meters of water. It is expected to significantly bolster the canal’s resilience against future weather related events such as the recent El Nino, but only time will tell how this project unfolds. At Trent Port Services Ltd - Your Trusted Port Specialists, we understand the importance of forward-thinking solutions in an ever-evolving industry. Our expertise in advanced AI-driven operational systems, terminal operating systems, and equipment asset management ensures that ports can navigate these complexities seamlessly. Want to know more about how Trent can help your port operations? Get in touch with me or the Trent team today. Find out more about our solutions and port terminal enhancements here: https://lnkd.in/dbXtUPZY