• Latest
  • Trending
  • All
  • Industry
  • Compliance
  • Global Trade
  • Industry
  • Sustainability & Ethics
  • Video
  • Security & Risk
A large container ship from the Global Supply Chain traveling down a river near a bridge.

Panama Canal Congestion Impacts Global Supply Chain

09/01/2023
Vidushi Infotech Powers Global Growth with AI-Driven IT Solutions and 22 Years of Expertise

Vidushi Infotech SSP Pvt. Ltd. Nominated for Go Global Awards 2025 – Set to Join Global Tech Leaders in London

07/02/2025
Vidushi Infotech Powers Global Growth with AI-Driven IT Solutions and 22 Years of Expertise

Vidushi Infotech Powers Global Growth with AI-Driven IT Solutions and 22 Years of Expertise

07/02/2025
PRINTCO SRL Nominated for 2025 Go Global Awards in London

PRINTCO: Romania’s Packaging Powerhouse Pioneering Innovation and Sustainability

07/01/2025
PRINTCO SRL Nominated for 2025 Go Global Awards in London

PRINTCO SRL Nominated for 2025 Go Global Awards in London

07/02/2025

HirtProductions Bridges Continents with Spiritually Uplifting Cinema

07/01/2025

HirtProductions Nominated for 2025 Go Global Awards for Excellence in Impact-Driven Cinema

07/01/2025
Trump Ends Canada Trade Talks, Signals Tariffs

Trump Ends Canada Trade Talks, Signals Tariffs

07/01/2025
Trump Signals Flexibility on Tariff Deadlines

Trump Signals Flexibility on Tariff Deadlines

07/01/2025
Canada Retaliates with Steel Quota After U.S. Tariff Threat

Canada Retaliates with Steel Quota After U.S. Tariff Threat

07/01/2025
Trump Warns Japan of New Tariffs Over Rice Trade

Trump Warns Japan of New Tariffs Over Rice Trade

07/01/2025
Tariffs Add $1 Billion Cost to Nike’s Supply Chain

Tariffs Add $1 Billion Cost to Nike’s Supply Chain

07/01/2025
Random Dynamic Resources Ltd Nominated for Go Global Awards 2025

Random Dynamic Resources Strengthens Research Impact Across Africa and Beyond

06/30/2025
supplychainreport
Wednesday, July 2, 2025
  • Home
  • Industry
    • Supply Chain
    • Logistics & Transportation
    • Importing & Exporting
    • Manufacturing
    • Warehousing & Distribution
  • Compliance
    • Supply Chain Transparency
    • Anti-Money Laundering (AML)
    • Know Your Customer (KYC)
    • Risk Management
    • Export Controls
    • Sanctions
  • Global Trade
    • Market Trends
    • Economic Indicators
    • Sourcing
    • Trade Policies
    • International Relations
    • Trade Agreements
    • Tariffs & Duties
    • Import/Export Statistics
  • Luxury Goods
  • Industry
    • Blockchain in Supply Chain
    • Importing & Exporting
    • Automation & Robotics
    • Artificial Intelligence in Trade
    • Data & Analytics
  • Sustainability & Ethics
    • Green Supply Chains
    • Sustainable Logistics
    • Ethical Sourcing
    • Corporate Social Responsibility
    • Environmental Policies
  • Security & Risk
    • Cybersecurity in Trade
    • Fraud & Scams
    • Risk Mitigation
    • Security Protocols
    • Data Protection
  • ITC News
    • ITC Featured Members
    • ITC Business Councils Highlights
  • Events
    • Upcoming Conferences
    • Upcoming FREE Educational Webinars
No Result
View All Result
supplychainreport
No Result
View All Result

Panama Canal Congestion Impacts Global Supply Chain

by Richie
09/01/2023
in Industry, Supply Chain

YOU MAY ALSO LIKE

Vidushi Infotech SSP Pvt. Ltd. Nominated for Go Global Awards 2025 – Set to Join Global Tech Leaders in London

Vidushi Infotech Powers Global Growth with AI-Driven IT Solutions and 22 Years of Expertise

The Panama Canal, a crucial shipping route connecting the Atlantic and Pacific oceans, is facing significant congestion due to a backlog of ships. In late August, approximately 135 vessels were waiting to pass through the 82-kilometer waterway, a 50% increase from the typical number. This bottleneck impacts a wide range of goods, including Ecuadorian bananas bound for Florida, Chilean poultry heading to northern Europe, US liquid natural gas (LNG) to Asia, and various products from China.

A prolonged drought has reduced water levels in the canal, necessitating a decrease in the number of ships that can traverse its locks. Consequently, large container ships and tankers carrying diverse cargoes, from perishable items to energy resources, are experiencing delays.

The severity of the impact varies depending on the type of cargo and destination. For instance, the shipping of bananas from Ecuador to Florida is critically affected as the Panama Canal is the primary route for this trade. For LNG shipments from the US to Asia, alternate routes like the Suez Canal are available but are more time-consuming and costly. This situation is particularly problematic for perishable goods in refrigerated containers, as delays can lead to spoilage.

The canal relies on rainwater for its operation, specifically for raising and lowering ships in its locks. However, increasing demands for water from the growing Panamanian population, agriculture, and water-intensive industries, combined with more frequent droughts due to climate change, have strained water availability. Panama Canal authorities have implemented water-saving measures and reduced the allowable weight for ships passing through, expecting these restrictions to last for about ten months.

The current backlog at the Panama Canal is raising concerns, especially in light of the recent global supply chain disruptions experienced during the pandemic. This situation is prompting businesses to consider “nearshoring” – relocating operations closer to their target markets to mitigate risks associated with extended supply chains and environmental factors.

As companies and consumers grapple with the implications of the Panama Canal congestion, the situation highlights the vulnerability and interconnectedness of the global supply chain.

Stay current with supply chain report news at The Supply Chain Report. For international trade tools, see ADAMftd.com.

#PanamaCanalCongestion #GlobalShippingDelays #PanamaCanalDrought #SupplyChainDisruptions #LNGShipping #EcuadorBananas #ChilePoultryExports #ClimateImpactShipping #NearshoringTrends #GlobalTradeRoutes #PerishableGoodsLogistics #RainwaterDependency #PanamaCanalBacklog

ShareTweet

Subscribe Our Newsletter

Share Your News

Whether it’s a groundbreaking achievement, a heartwarming tale, or an insightful perspective, we want to hear it. Share your news with us, and let’s amplify your voice in the digital symphony of stories.

Submit

A man is riding a bike on a hill.

The Supply Chain Report is your essential daily news website, serving as a trusted source for comprehensive coverage of the complex and ever-evolving global supply chain dynamics. Our expert team delves into the intricacies of international trade, manufacturing, logistics, importing, exporting, and supply chain management; providing in-depth analysis and up-to-date news on the latest trends, disruptions, and technological advancements affecting industries worldwide. From detailed reports on international trade through to insights into procurement strategies and inventory management, we offer valuable content that helps professionals stay informed and make knowledgeable decisions in a fast-paced market.

Each day, we bring you cutting-edge news and expert commentary that dissect significant international trade and supply chain issues Our coverage spans a wide array of sectors including manufacturing, retail, healthcare, food, consumer goods, and technology, ensuring that no matter your field, you have the strategic information needed to navigate the challenges and opportunities of today’s supply chain landscape. By synthesizing complex data and presenting actionable insights, The Supply Chain Report empowers business leaders, policymakers, and logistics professionals to optimize their operations and drive forward with confidence in an interconnected world.

Connect With Us

  • About
  • Events
  • Privacy Policy
  • Contact Us

© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.

No Result
View All Result
  • Home
  • Industry
    • Supply Chain
    • Logistics & Transportation
    • Importing & Exporting
    • Manufacturing
    • Warehousing & Distribution
  • Compliance
    • Supply Chain Transparency
    • Anti-Money Laundering (AML)
    • Know Your Customer (KYC)
    • Risk Management
    • Export Controls
    • Sanctions
  • Global Trade
    • Market Trends
    • Economic Indicators
    • Sourcing
    • Trade Policies
    • International Relations
    • Trade Agreements
    • Tariffs & Duties
    • Import/Export Statistics
  • Luxury Goods
  • Industry
    • Blockchain in Supply Chain
    • Importing & Exporting
    • Automation & Robotics
    • Artificial Intelligence in Trade
    • Data & Analytics
  • Sustainability & Ethics
    • Green Supply Chains
    • Sustainable Logistics
    • Ethical Sourcing
    • Corporate Social Responsibility
    • Environmental Policies
  • Security & Risk
    • Cybersecurity in Trade
    • Fraud & Scams
    • Risk Mitigation
    • Security Protocols
    • Data Protection
  • ITC News
    • ITC Featured Members
    • ITC Business Councils Highlights
  • Events
    • Upcoming Conferences
    • Upcoming FREE Educational Webinars

© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.