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."

Helping out California
Helping out California 16 Jan 2025 - California, LA, United States - 2 min read
Crane operator charged over container fatality
Crane operator charged over container fatality 11 Jul 2024 - Uran, Navi Mumbai, India - 1 min read
Connie the container dog dies
Connie the container dog dies 4 Jul 2024 - Rockville, MD, United States - 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
Inside The News
This week in Forkliftaction News we talk with four Chinese forklift manufacturers about their aspirations for a burgeoning export market and what the introduction of additional US tariffs will mean for their business models... Continue reading

PREMIUM business

Lift Technologies Inc.
Global leader - manufactures masts, carriages, sideshifters & fork positioners

This April, Forkliftaction will publish an in-depth feature report on the latest innovations in materials handling attachment design.

Do you have expertise in this field? 
Feature contribution is a unique opportunity to share your knowledge in a widely read and respected editorial report. 

Contributor sign-up ENDS FEBRUARY 20thcontact us today to secure your participation!

Words of support …

After advertising with Forkliftaction.com, we got many enquiries regarding interest to be our distributor. Mostly from Europe and USA but including a few in ASEAN. We feel that the advertisement was useful and good for market expansion.

Lawrence Xu, Assistant Sales Manager - Resonac Asia Pacific Pte Ltd.

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

Forkliftaction's JOB MARKET

This April, Forkliftaction will publish an in-depth feature report on the latest innovations in materials handling attachment design.

Do you have expertise in this field? 
Feature contribution is a unique opportunity to share your knowledge in a widely read and respected editorial report. 

Contributor sign-up ENDS FEBRUARY 20thcontact us today to secure your participation!

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

Forkliftaction's JOB MARKET

This April, Forkliftaction will publish an in-depth feature report on the latest innovations in materials handling attachment design.

Do you have expertise in this field? 
Feature contribution is a unique opportunity to share your knowledge in a widely read and respected editorial report. 

Contributor sign-up ENDS FEBRUARY 20thcontact us today to secure your participation!