From February to April, the amount of precipitation in the area of the Panama Canal and the lakes that feed it was less than 50% of normal. The Panama Canal Authority continues to impose restrictions on the maximum vessel load due to the severe drought. Starting May 24, ships passing through the Panama Canal will have to reduce their draft and carry less cargo, USM reports.
40% reduction in the amount of cargo
Starting from May 24, Neo-Panamax vessels passing through the canal will have to reduce their draft to 13.56 m, said Octavio Colindres, spokesman for the Panama Canal Authority. As early as May 30, the maximum draft of ships is planned to be reduced to 13.41 meters. Although this seems like a minor change, the restriction could lead to a 40% reduction in the amount of cargo on some container ships, the report said.
Increasing fees
Due to the restrictions, ocean carriers are increasing fees for transporting containers through the canal. Also, at least four ocean carriers have announced weight restrictions or introduced transportation fees (from $300 to $500 per container) since June 1. Container ships accounted for 45% of the fleet of ships passing through the Panama Canal in April.
From February to April, the amount of precipitation in the area of the Panama Canal and the lakes that feed it was less than 50% of normal. The water level in Lake Gatun, the largest of the two lakes that feed the canal, is expected to reach a historic low by July.
Last year, the Netherlands, Germany, and the Czech Republic saw so-called hungry stones in those parts of rivers where water levels dropped to record lows.
Between June and July last year, the inflow into the Dniester reservoir decreased from 56 to 30 cubic meters per second, which is one of the lowest levels in almost 50 years.
The shallowing of one of Europe’s largest rivers, the Rhine, disrupted logistics supply chains in 2022. The water level in the river dropped sharply due to record heat in Europe and lack of precipitation on the continent.
The State Agency of Water Resources of Ukraine reported that this year the country should reduce water use. Its level in the rivers has dropped by a meter and a half, and reserves are dwindling. According to the acting head of the state agency, Mikhail Khorev, the restrictive measures are not related to water supply. The agricultural sector will be the first to feel the water shortage.
Insufficient soil moisture caused by a lack of precipitation and high temperatures during the summer months has led to a deterioration in harvest conditions, which may decrease by 20-40%, depending on the region. This is evidenced by a survey of farmers participating in the All-Ukrainian Agrarian Council (AAC).