The Panama Canal a vital lifeline for global trade is currently grappling with its worst traffic jam ever. The canal has become a traffic jam of the seas in total 200 vessels are stuck on either side of the Waterway. Commercial ships are facing long queues and delays to travel through the Panama Canal as a lengthy drought in the Central American country has led to a cut in the number of vessels that can actually pass the crossings every day.

Panama Canal traffic jam: Drought limits the number of vessels able to pass

The drought-hit Panama Canal is suffering from an issue of traffic as a flotilla of ships is reportedly stuck on both sides. The vessels have been waiting for weeks to cross after the authorities reduced transits to conserve water.&nbsp;

More than 200 ships are currently waiting to pass, data from vessel tracking showed. This number has increased since the canal last month limited daily transits to 32 from an average of 36 under normal circumstances.&nbsp;

The Panama Canal is an artificial 82-kilometre-long waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean. It divides North and South America. The canal cuts across the Isthmus of Panama and is a conduit for maritime trade.&nbsp;

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A Reuters report earlier this month mentioned that since the beginning of the year, the Panama Canal instituted a number of depth restrictions as the drought, caused by the El Nino weather phenomenon, put pressure on its water supplies.&nbsp;

In June, the canal postponed further restrictions that would have required ships to lighten their loads to pass more easily.&nbsp;

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The waterway's chief Ricaurte Vasquez told Reuters last week that the economic impact of the restrictions will be felt the hardest in the fiscal year beginning in October.

"There has not been a situation of this level of criticality in the history of the canal. In 1997, which was the driest year on record, we only operated the Panamax locks, and at that time we lowered the draft to the minimum. This time around we are telling them: people, we are going to maintain the draft, the only way to conserve water is to reduce the number of crossings," Vasquez told Reuters.&nbsp;

A WSJ report stated that the waterway's entrances on the Pacific and Atlantic oceans are dotted with ships that are backed up for more than 20 days.&nbsp;

Most are frequently hired last-minute bulk cargo or gas carriers and to get around the backlog, some shipowners are rerouting traffic.&nbsp;

As quoted by WSJ, Tim Hansen, who is the chief commercial officer at Dorian LPG, said: "The delays are changing by the day. Once you make a decision to go there is no point to return or deviate, so you can get stuck." The report mentioned that Dorian LPG operates more than 20 large gas carriers.&nbsp;

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The drought-hit Panama Canal is suffering from an issue of traffic as a flotilla of ships is reportedly stuck on both sides. The vessels have been waiting for weeks to cross after the authorities reduced transits to conserve water.

The drought-hit Panama Canal is suffering from an issue of traffic as a flotilla of ships is reportedly stuck on both sides. The vessels have been waiting for weeks to cross after the authorities reduced transits to conserve water. More than 200 ships are currently waiting to pass, data from vessel tracking showed. This number has increased since the canal last month limited daily transits to 32 from an average of 36 under normal circumstances. The Panama Canal is an artificial 82-kilometre-long waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean. It divides North and South America. The canal cuts across the Isthmus of Panama and is a conduit for maritime trade. Also read: Canada to send military to tackle fast-spreading wildfires in British Columbia A Reuters report earlier this month mentioned that since the beginning of the year, the Panama Canal instituted a number of depth restrictions as the drought, caused by the El Nino weather phenomenon, put pressure on its water supplies. In June, the canal postponed further restrictions that would have required ships to lighten their loads to pass more easily. Watch: Know how influencers are making money by letting people watch them sleep × Also read: Tropical Storm Hilary batters California: Flash-floods and tornado warnings in place The waterway's chief Ricaurte Vasquez told Reuters last week that the economic impact of the restrictions will be felt the hardest in the fiscal year beginning in October. "There has not been a situation of this level of criticality in the history of the canal. In 1997, which was the driest year on record, we only operated the Panamax locks, and at that time we lowered the draft to the minimum. This time around we are telling them: people, we are going to maintain the draft, the only way to conserve water is to reduce the number of crossings," Vasquez told Reuters. A WSJ report stated that the waterway's entrances on the Pacific and Atlantic oceans are dotted with ships that are backed up for more than 20 days. Most are frequently hired last-minute bulk cargo or gas carriers and to get around the backlog, some shipowners are rerouting traffic. As quoted by WSJ, Tim Hansen, who is the chief commercial officer at Dorian LPG, said: "The delays are changing by the day. Once you make a decision to go there is no point to return or deviate, so you can get stuck." The report mentioned that Dorian LPG operates more than 20 large gas carriers. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Drought-hit Panama Canal reels under traffic jams with over 200-ship backlog

Drought-hit Panama Canal will expand restrictions on the largest ships crossing the waterway, the canal authority's administration said on Wednesday (June 21). According to a report by the news agency Reuters, the restrictions would come into effect from Sunday and limit the neo-Panamax container ships to a depth limit of 43.

Drought-hit Panama Canal will expand restrictions on the largest ships crossing the waterway, the canal authority's administration said on Wednesday (June 21). According to a report by the news agency Reuters, the restrictions would come into effect from Sunday and limit the neo-Panamax container ships to a depth limit of 43.5 feet. This means that these ships must either carry less cargo or shed weight to float higher. As per an advisory issued by the port administration, the Panamax ships would also face tightened rules from July 19. Speaking to Reuters, Port administrator Ricaurte Vasquez said the July 19 measure would depend on how much rain pours into the lake system surrounding the canal. Vaquez said the current lack of rainfall is worrisome as the canal basin must also provide additional drinking water for residents. The expansion restrictions come after a series of depth restrictions in the Panama Canal since the beginning of this year because of drought. El Nino, a periodic warming weather phenomenon, brought a severe drought along the Pacific coast. Vaquez also said on Wednesday that despite the new rules, the flow of ships the canal carried on is as expected so far. The administrator, however, warned the flow of ships could be impacted depending on rainfall and higher route costs due to the new limits. Water levels in Gatún Lake could hit record lows next month As the restrictions come into effect, meteorologists warned the water levels in Gatún Lake, which is located at the centre of the canal, could hit record lows in July, with El Nino bringing higher temperatures and less rain, a report by Wall Street Journal (WSJ) on Tuesday said. The report added that disruptions in the canal's operations would impact Southern Hemisphere exporters and importers in the north. The canal is Panama's biggest foreign-revenue generator responsible for more than $3 billion from tolls last year. Officials have spent years planning for more extreme weather events to preserve the canal's role as an important trade route. Speaking to the publication, a spokesperson from Maersk said that low water levels at the canal were a clear example of the effects of climate change that caused a ripple through the supply chain. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Drought-hit Panama Canal to expand restrictions on largest ships crossing the waterway

Panama on Sunday declared its century-old canal open to a new generation of supersized cargo ships after years of massive expansion works aimed at profiting from burgeoning US-Asia trade. 
 
A giant Chinese-chartered freighter, baptised COSCO Shipping Panama especially for the occasion, made its way along the 80-kilometre (50-mile) waterway linking the Atlantic and Pacific oceans. 
 
Its passage was to show off the third shipping lane and gargantuan locks built into the canal catering to vessels of its class, known as Neopanamax, or New Panamax, ships. 
 
It stopped in the locks giving access to the Pacific, where VIPs and 25,000 Panamanians had gathered to celebrate the inauguration. 
 
The freighter&#39;s horn bellowed out triumphantly several times, triggering applause and cheers from the flag-waving crowd before they were treated to fireworks and a song-and-dance show relating to the history of the canal. 
 
President Juan Carlos Varela, who has hailed the renovated canal as &quot;the route that unites the world,&quot; led the event alongside foreign dignitaries including Chilean President Michelle Bachelet, all wearing white. 
 
Varela, in his speech, admitted he had not initially backed the canal&#39;s expansion, before he became president. 
 
But as leader, he said, he recognized it would deliver &quot;a better future&quot; for the country. 
 
&quot;This is the beginning of a new era,&quot; said the head of the state Panama Canal Authority, Jorge Quijano. 
 
The United States -- builder of the original canal, which opened in 1914 and is still in operation alongside the additions -- was represented at the ceremony by Jill Biden, the wife of the US vice president. 
 
The United States and China are the two most frequent canal users. 
 
The expansion work was carried out since 2007 and finished two years late at a cost of at least $5.5 billion. 
 
Labor disputes and friction between the government and the European consortium that carried out the project dogged the work. Still outstanding are consortium demands for costs overruns of hundreds of millions of dollars. 
 
Sunday&#39;s celebrations however focused on the achievement, which promises to double the volume of cargo passing through the canal and allow it to accommodate 98 percent of ships on the oceans. 
 
Neopanamax freighters can carry up to three times the cargo of older and smaller Panamax ships. Cruise ships built to the same dimensions typically double the number of passengers of the previous iteration. 
 
The expansion will also allow Panama to lure gargantuan liquified natural gas (LNG) tankers. 
 
This is a lucrative segment of the shipping market untapped until now by Panama. Its importance has grown with the development of US natural gas exports, most of which head to Japan and South Korea. 
 
Panama&#39;s plan is to triple the $1 billion in revenue it currently gets from canal shipping fees. 
 
However, that goal might still be a decade away, according to officials from the Panama Canal Authority, the autonomous government agency that runs the waterway. 
 
Panama might have been overly ambitious in calculating how fast it will see its investment pay off, particularly as world shipping prices that have dropped due to capacity oversupply. 
 
&quot;Everybody is always overly optimistic,&quot; said Peter Shaerf, deputy chairman of Seaspan Corporation, a container ship group with a fleet of 100 vessels, more than half of which are Neopanamaxes. 
 
But, he told AFP on Saturday, the canal itself is &quot;one of the engineering wonders of the world&quot; and it &quot;will have a huge impact on trade.&quot; 
 
For Panama, the feat is a source of national pride, symbolizing the country&#39;s enviable modernity compared to neighbors, and its consistently high economic growth. 
 
The government hopes the glitz and historical nature of the broadened canal will help overshadow the blow the country took to its reputation this year with the &quot;Panama Papers&quot; scandal. 
 
Revelations of offshore companies started by a Panama law firm, and used by the world&#39;s rich and influential to dodge taxes and stash assets, have become the first thing many people think of when the Central American nation is mentioned. 
 
But the canal, and the work to develop it for modern trade, is &quot;the real face of Panama,&quot; Quijano, the Panama Canal Authority chief, told AFP this week. 
 
(AFP)

Expanded canal hopes to profit from burgeoning US-Asia trade

Panama on Sunday declared its century-old canal open to a new generation of supersized cargo ships after years of massive expansion works aimed at profiting from burgeoning US-Asia trade. A giant Chinese-chartered freighter, baptised COSCO Shipping Panama especially for the occasion, made its way along the 80-kilometre (50-mile) waterway linking the Atlantic and Pacific oceans. Its passage was to show off the third shipping lane and gargantuan locks built into the canal catering to vessels of its class, known as Neopanamax, or New Panamax, ships. It stopped in the locks giving access to the Pacific, where VIPs and 25,000 Panamanians had gathered to celebrate the inauguration. The freighter's horn bellowed out triumphantly several times, triggering applause and cheers from the flag-waving crowd before they were treated to fireworks and a song-and-dance show relating to the history of the canal. President Juan Carlos Varela, who has hailed the renovated canal as "the route that unites the world," led the event alongside foreign dignitaries including Chilean President Michelle Bachelet, all wearing white. Varela, in his speech, admitted he had not initially backed the canal's expansion, before he became president. But as leader, he said, he recognized it would deliver "a better future" for the country. "This is the beginning of a new era," said the head of the state Panama Canal Authority, Jorge Quijano. The United States -- builder of the original canal, which opened in 1914 and is still in operation alongside the additions -- was represented at the ceremony by Jill Biden, the wife of the US vice president. The United States and China are the two most frequent canal users. The expansion work was carried out since 2007 and finished two years late at a cost of at least $5.5 billion. Labor disputes and friction between the government and the European consortium that carried out the project dogged the work. Still outstanding are consortium demands for costs overruns of hundreds of millions of dollars. Sunday's celebrations however focused on the achievement, which promises to double the volume of cargo passing through the canal and allow it to accommodate 98 percent of ships on the oceans. Neopanamax freighters can carry up to three times the cargo of older and smaller Panamax ships. Cruise ships built to the same dimensions typically double the number of passengers of the previous iteration. The expansion will also allow Panama to lure gargantuan liquified natural gas (LNG) tankers. This is a lucrative segment of the shipping market untapped until now by Panama. Its importance has grown with the development of US natural gas exports, most of which head to Japan and South Korea. Panama's plan is to triple the $1 billion in revenue it currently gets from canal shipping fees. However, that goal might still be a decade away, according to officials from the Panama Canal Authority, the autonomous government agency that runs the waterway. Panama might have been overly ambitious in calculating how fast it will see its investment pay off, particularly as world shipping prices that have dropped due to capacity oversupply. "Everybody is always overly optimistic," said Peter Shaerf, deputy chairman of Seaspan Corporation, a container ship group with a fleet of 100 vessels, more than half of which are Neopanamaxes. But, he told AFP on Saturday, the canal itself is "one of the engineering wonders of the world" and it "will have a huge impact on trade." For Panama, the feat is a source of national pride, symbolizing the country's enviable modernity compared to neighbors, and its consistently high economic growth. The government hopes the glitz and historical nature of the broadened canal will help overshadow the blow the country took to its reputation this year with the "Panama Papers" scandal. Revelations of offshore companies started by a Panama law firm, and used by the world's rich and influential to dodge taxes and stash assets, have become the first thing many people think of when the Central American nation is mentioned. But the canal, and the work to develop it for modern trade, is "the real face of Panama," Quijano, the Panama Canal Authority chief, told AFP this week. (AFP)

New and improved Panama canal opens

Panama is preparing to officially open its canal this weekend to far bigger cargo ships after nearly a decade of expansion work aimed at boosting transit revenues and global trade. 
 
On Sunday, a VIP ceremony will be held on the banks of the canal to inaugurate the completion of the works. 
 
President Juan Carlos Varela will unveil the new locks and third shipping lane built into the 102-year-old canal. Foreign dignitaries, including the presidents of Taiwan, Chile and other Central American nations, will be present at the ceremony. 
 
A Chinese-owned Neopanamax-class cargo ship will be the first vessel to officially test the new infrastructure, entering from the Atlantic and exiting into the Pacific a few hours later. 
 
The Neopanamax vessels are much bigger than the Panamax-class ships that previously were the largest able to pass through the 80-kilometer (50-mile) long canal. Each is able to haul three times as much cargo as the smaller predecessors. 
 
The expansion work began in 2007 and was meant to have been completed in 2014, but it ran well past deadline, and over budget. 
 
The expansion is estimated to have cost $5.5 billion. However, outstanding disputes between the Spanish- and Italian-led consortium that carried out the work and the Panamanian government could yet hike that figure by hundreds of millions more.For Panama, the unveiling of the broader canal is a moment of pride and of opportunity. 
 
Now, ships as long as the Eiffel Tower is tall, and as broad as Olympic-sized swimming pools, will be able to use the canal. 
 
Annual cargo volumes should double over the next decade, leading Panama to hope to triple the $1 billion in shipping fees it receives each year. 
 
Also, with the country these days linked to the &quot;Panama Papers&quot; scandal of offshore businesses owned by the world`s wealthy and influential, the expanded canal is seen as a chance to burnish the country`s tarnished image. 
 
This will show the &quot;real face of Panama,&quot; Panama Canal Authority (ACP) chief Jorge Quijano told AFP in an interview this week. 
 
World trade should also benefit from what will essentially be an inter-oceanic highway for goods between the United States and Asia. More cargo on bigger ships should mean lower transport costs.Panama is also avidly eyeing the lucrative market of transporting liquefied natural gas between the United States and Asia, principally to Japan. 
 
The ships carrying the gas were too big to use the old canal. With the expansion, they now can. 
 
&quot;When we started this expansion, we did not have on our radar that the United States was going to be a net exporter of gas and oil,&quot; ACP deputy administrator Manuel Benitez Hawkins told journalists Saturday. 
 
Now, with the US producing gas and oil from shale, American interest in using the canal has grown. 
 
&quot;That will add to the revenue and help us recoup&quot; the massive investment, Benitez said. 
 
Currently, some five per cent of global maritime commercial traffic uses the canal, which provides a valuable shortcut between North America and Asia. 
 
(AFP)

The $5.5-million expansion is expected to benefit world trade as it will serve as an inter-oceanic highway between the US and Asia

Panama is preparing to officially open its canal this weekend to far bigger cargo ships after nearly a decade of expansion work aimed at boosting transit revenues and global trade. On Sunday, a VIP ceremony will be held on the banks of the canal to inaugurate the completion of the works. President Juan Carlos Varela will unveil the new locks and third shipping lane built into the 102-year-old canal. Foreign dignitaries, including the presidents of Taiwan, Chile and other Central American nations, will be present at the ceremony. A Chinese-owned Neopanamax-class cargo ship will be the first vessel to officially test the new infrastructure, entering from the Atlantic and exiting into the Pacific a few hours later. The Neopanamax vessels are much bigger than the Panamax-class ships that previously were the largest able to pass through the 80-kilometer (50-mile) long canal. Each is able to haul three times as much cargo as the smaller predecessors. The expansion work began in 2007 and was meant to have been completed in 2014, but it ran well past deadline, and over budget. The expansion is estimated to have cost $5.5 billion. However, outstanding disputes between the Spanish- and Italian-led consortium that carried out the work and the Panamanian government could yet hike that figure by hundreds of millions more.For Panama, the unveiling of the broader canal is a moment of pride and of opportunity. Now, ships as long as the Eiffel Tower is tall, and as broad as Olympic-sized swimming pools, will be able to use the canal. Annual cargo volumes should double over the next decade, leading Panama to hope to triple the $1 billion in shipping fees it receives each year. Also, with the country these days linked to the "Panama Papers" scandal of offshore businesses owned by the world`s wealthy and influential, the expanded canal is seen as a chance to burnish the country`s tarnished image. This will show the "real face of Panama," Panama Canal Authority (ACP) chief Jorge Quijano told AFP in an interview this week. World trade should also benefit from what will essentially be an inter-oceanic highway for goods between the United States and Asia. More cargo on bigger ships should mean lower transport costs.Panama is also avidly eyeing the lucrative market of transporting liquefied natural gas between the United States and Asia, principally to Japan. The ships carrying the gas were too big to use the old canal. With the expansion, they now can. "When we started this expansion, we did not have on our radar that the United States was going to be a net exporter of gas and oil," ACP deputy administrator Manuel Benitez Hawkins told journalists Saturday. Now, with the US producing gas and oil from shale, American interest in using the canal has grown. "That will add to the revenue and help us recoup" the massive investment, Benitez said. Currently, some five per cent of global maritime commercial traffic uses the canal, which provides a valuable shortcut between North America and Asia. (AFP)

Newly expanded Panama Canal opens for bigger business

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Panama Canal traffic jam: Drought limits the number of vessels able to pass

Drought-hit Panama Canal reels under traffic jams with over 200-ship backlog

Drought-hit Panama Canal to expand restrictions on largest ships crossing the waterway

New and improved Panama canal opens

Newly expanded Panama Canal opens for bigger business