Panama Canal traffic jam diverts freight

News Story
- 31 Aug 2023 ( #1143 ) - Balboa, Panama
1 min read
The Panama Canal is the primary route for container ships from Asia to the eastern coast of the United States
The Panama Canal is the primary route for container ships from Asia to the eastern coast of the United States

The drought-related traffic jam in the Panama Canal has diverted about 20% of the volume of freight to the East Coast of the United States to the West Coast, according to shipping software company Setlog.

After evaluating the flow of goods from US customers in Setlog's supply chain management software OSCA, Setlog board member Ralf Duester says the diversions are mainly being made to the ports of Long Beach and Los Angeles.

“From there, the shipments are transported by rail or truck or, if there is flexibility, to other distribution warehouses,” Duester says.

“These are mainly consumer goods.”

The Panama Canal is the primary route for 57.5% of the total cargo transported in container ships from Asia to the eastern coast of the US, according to the Panama Canal Authority (ACP).

Because of low water levels the ACP has reduced the number of vessels that can transit the Panama Canal from 36 to 32 a day.

The authority says 135 vessels are queued to transit the 80 km long canal, higher than the goal of less than 90 vessels.

Media outlets report delays of up to three weeks.

The ACP has also imposed depth limit for large vessels, which means some ships offloaded containers onto trains and collected them on the other side of the passage, adding to transport costs.  

Setlog’s Duester says the situation should be a wake-up call for policymakers and companies to prepare for climate change disrupting supply chains.

"Climate change has arrived in logistics,” he says. “The forecasts of climate researchers show that it is high time for politicians and companies to take precautions."

Ports in Croatia, Malaysia invest in new equipment
Ports in Croatia, Malaysia invest in new equipment 11 Apr 2024 - Rijeka, Croatia - 1 min read
Death and destruction near containers
Death and destruction near containers 4 Apr 2024 - Ulsan, Korea, Republic Of - 1 min read
Verbrugge chooses Konecranes terminal operating system
Verbrugge chooses Konecranes terminal operating system 1 Feb 2024 - Terneuzen, Netherlands - 1 min read
Previously about:
Rhenus acquires software outfit Setlog News Story - 2 Nov 2023 - Bochum, NY, United States - 1 min read
LogiMAT review: automatic response News Story - 9 Jun 2022 - Stuttgart, Germany - 9 min read
Do you have materials handling news? Submit your news here

PREMIUM business

Rocla AGV Solutions
Leading developer & manufacturer of automated guided vehicles (AGVs) tailored to the customers' specific needs.

CeMAT Australia is returning to the Melbourne Convention and Exhibition Centre on July 23 - 25, 2024.

Register for free and experience the leading global trade show for intralogistics, materials handling, and supply chain management, and familiarise yourself with the latest technology in your sector!

Register Now! 

Words of support …

Undoubtedly, peer experience plays a crucially important role in our industry and it is extremely valuable for us to be part of the platform, where industry professionals, as well as end users can discuss and learn more about the materials handling world.

Alexandra Artemova, Marketing Specialist - Rocla AGV Solutions

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

“I really enjoy your newsletter and share the articles with all my training team for industry currency. I also print and display specific articles on forklift safety and accidents on our notice board for all the learners who attend our training courses to read...”

Gavin Trim - CEO, High Risk Work Licence Assessor, Mechanical Handling Equipment Specialist - Nationwide Training

Thanks Gavin for sharing your experience with Forkliftaction

PREMIUM business

Bolzoni SpA (Group HQ)
Manufacturer of Lift Truck Attachments, Forks and Lift Tables, with the most extensive range in the market.

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

“I really enjoy your newsletter and share the articles with all my training team for industry currency. I also print and display specific articles on forklift safety and accidents on our notice board for all the learners who attend our training courses to read...”

Gavin Trim - CEO, High Risk Work Licence Assessor, Mechanical Handling Equipment Specialist - Nationwide Training

Thanks Gavin for sharing your experience with Forkliftaction