A recent report from Container xChange showed that dry bulk and LNG shipping are the segments that have been most impacted by the drought currently plaguing the Panama Canal. Additionally, Container xChange said that the repercussions of the Panama Canal drought will continue throughout 2024.

“The Dry Bulk and LNG segments have experienced the greatest impact due to restricted transits, primarily because they don't adhere to a fixed liner schedule but instead ‘arrive at the canal on an ad hoc basis.’ In contrast, liner shipping has faced minimal consequences from transit reductions but has primarily been affected by draught reductions,” said Christian Roeloffs, the co-founder and CEO of Container xChange. “The maximum draught has been decreased from 50 feet to 44 feet, with each foot reduction in draught resulting in a ‘loss’ of 400 TEU capacity. Consequently, an average container vessel can now transport 2,400 TEU less.”

In response to the ongoing crisis, carriers have begun redirecting their shipments to the U.S. West Coast or have opted for alternative routes via the Suez Canal. Container xChange said that this shift could affect transportation costs, delivery times and the supply chain efficiency of U.S. businesses.