Table Of Content
- ASX defies US tech slump to jump in early trade
- NCL unveils fresh culinary experiences aboard Aqua
- Drought Saps the Panama Canal, Disrupting Global Trade
- EXCITING: Royal Caribbean Brings Its Royal Beach Club Concept to Cozumel
- Best cruises from Southeast Asia from $462pp for five nights
- What has caused low water levels in the Panama Canal?
The canal is favoured by many shippers as it usually reduces cost and transit times, especially for large retailers and energy companies that trade between China and the rest of Asia, and the US. Cutting through the narrow isthmus saves thousands of miles on trips that might otherwise need to route around the tip of South America or through the Red Sea, where Houthi attacks have thwarted traffic in recent months. Considering the potential long-term implications of the Panama Canal crisis, cruise lines may need to reassess their itineraries and operations, possibly resulting in fewer Panama Canal crossings or alternative routes.
ASX defies US tech slump to jump in early trade
Rising temperatures also evaporate a significant amount of moisture from the reservoir and its watershed. The lake that allows the Panama Canal to function recorded the lowest water level ever for the start of a dry season this year, which means that vastly fewer ships can pass through the canal. The extreme drought, exacerbated by an ongoing El Niño that is affecting Gatún Lake and the whole region appears likely to last into May.
NCL unveils fresh culinary experiences aboard Aqua
Drought-hit Panama Canal to increase shipping slots to 24 - Reuters
Drought-hit Panama Canal to increase shipping slots to 24.
Posted: Fri, 15 Dec 2023 08:00:00 GMT [source]
So my suggestion is that if you’re booked on a Norwegian Cruise calling on Panama go check their website and see if your itinerary has been changed. There are four issues per year, with each issue is packed full of must-read features, including cruise news, reviews, destination guides and the most enticing itineraries. Travellers are advised to stay informed and flexible about their regional cruise plans and to contact their cruise operators for more information and guidance on the next steps.
Drought Saps the Panama Canal, Disrupting Global Trade
Live maritime tracking websites showed about 140 vessels near the canal on Monday, a considerable increase from the level of about 90 ships usually seen in the area during the rainy season, which lasts from May to December. In a fresh demonstration of the impact of the climate crisis on global business and trade, the Panama Canal Authority (ACP), which manages the waterway, introduced restrictions on the number of transiting vessels as a result of the drought. So I think that I figured out why our cruise on Oceania Cruises this winter has now moved from Colombia to Panama, it’s because their sister line with much larger ships has shifted operations out of Panama and into Colombia. What I haven’t been able to determine is how much of this has to do with the drought and low water levels and how much of it has to do with the cruise facilities in Panama. Understanding the operational challenges posed by the Panama Canal’s low water levels is crucial for cruise passengers affected by these cancellations. Aurora Expeditions and other cruise operators are likely exploring alternative solutions for affected travellers, such as rerouting or rescheduling their journeys.
EXCITING: Royal Caribbean Brings Its Royal Beach Club Concept to Cozumel
I remember when I did research many years ago before our full transit 15 day cruise from Fort Lauderdale to San Diego, that the fee for cruise ship is based on per bed basis. Don't know if they still use that method, but as Chief said above, cruise ships are money makers for the canal. With the ongoing drought in Panama, and ships backed up at the canal, I am wondering what will happen to cruise ships come October if drought conditions continue. The disruption of the major trade route between Asia and the United States comes at a precarious time. Attacks on commercial ships in the Red Sea by Yemen’s Houthi rebels have rerouted vessels away from the crucial corridor for consumer goods and energy supplies. Attacks on commercial ships in the Red Sea by Yemen's Houthi rebels have rerouted vessels away from the crucial corridor for consumer goods and energy supplies.
Crystal offers free suite upgrades on bookings made before 31 March
This was slightly lower than the 160 vessels seen close to the canal on Thursday, and could be a sign that measures to clear the backlog have been working. “Before it was a very small percentage of total water use, and now it's the equivalent of four or five lockages per day,” said Gloria Arrocha Paz, a meteorologist at the Panama Canal Authority. Each maneuver takes around 50 million gallons from its reservoirs to raise and lower vessels through the locks before spilling into the sea. “Considering we are going to reach our peak of season at the peak of the problem in the canal, this affects us importantly,” he said.
Best cruises from Southeast Asia from $462pp for five nights
Opinion There's no drought in Panama Canal plans - The Washington Post
Opinion There's no drought in Panama Canal plans.
Posted: Thu, 08 Feb 2024 08:00:00 GMT [source]
“So, potentially, US grain exporters will be hit hardest by the disruption to trade flows,” Paglia said. Each choice adds cost, at a time when governments around the world are struggling to tame inflation. And the bottleneck will only worsen in the coming months as Panama enters its annual dry season, which typically begins in December and lasts until April or May. Based on the story, I'll suggest the cruise line have determined the ROI is insufficient due to high fuel costs, Canal costs and few ports to sell shore-ex. To put it in perspective, when sailing the Panama Canal shuttle many years ago, we were on 14-day cruises, with many more ports. Also all the water used for the locks and Lake Gatun is fresh water relying on the rain fall during the rainy season in the mountains of Panama.
Seabourn appoints Traditional Owners as godparents to Seabourn Pursuit
In recent months, the water level measured at Kaub, west of Frankfurt – a particularly narrow point where the navigable channel is shallower than elsewhere on the river – has been lower than usual and, in late July, fell to its lowest level of the year. On our sailing last year through the Panama Canal we had a canal expert on board who provided a history of the canal from its construction through today. One of the things he shared was that there are limits on the number of ships passing through the canals each day and there are different fees depending on how you transit the canal. Cruise ships book windows of time months or even years in advance paying the highest prices to pass through the canal, while a number of cargo ships choose to wait on either side to get a non-reserved slot and thus pay a lot less. Since its completion in 1914, the canal has served as a vital link between the Pacific and Atlantic Oceans, allowing ships to bypass the lengthy journey around South America.
What has caused low water levels in the Panama Canal?
Economist Inga Fechner of ING Research said the effect on commodity and consumer prices has been muted by sluggish global demand. But the higher shipping costs will have a trickle-down effect in the long run, ultimately hitting consumers. Other shippers opt for detours that can add thousands of miles and more than a week at sea — sometimes through perilous waters. Ships from the Gulf Coast or eastern US that may have sailed to Asia via the canal now head in the opposite direction, rerouting around South Africa’s Cape of Good Hope or through Egypt’s Suez Canal. Our ship, Oceania Sirena is fairly small at 30,277 gross tons and a beam/width of 82 feet (25 m) by modern cruise ship standards and can easily pass in the original canal. The extension of the restrictions would give the canal room for preserving water before the next rainy season arrives, but could create a larger bottleneck of ships if they do not reserve ahead of passage.
Money for an auctioned slot comes on top of the canal’s usual transit fee, which depending on the vessel’s size can be close to $1 million. Relax and enjoy picking your excursions and reading up on the canal history and the wonderful ports and countries you will visit. Just a bit nervous as this drought persists and the cruise lines likely to get hit with additional fees. It is a priority for CBC to create products that are accessible to all in Canada including people with visual, hearing, motor and cognitive challenges. Mr Paton said that if that continues, it will be increasingly difficult for the canal to guarantee that the largest ships are going to be able to get through. The frequency of major El Niño drying patterns has risen significantly during the last 25 years of the canal's 109-year history.
The new measures were adopted after a slight return of rain so far in April, the ACP also said. As of June 15, the maximum draft allowed for ships passing through the new neopanamax locks will be 13.71 meters to ensure “safe navigation,” the ACP added. However, maintenance work from May 7 to 15 will reduce the number of transits through the Panamax locks from 20 to 17 per day.
Evergreen’s Ever Max for example offloaded 1,400 TEU or nearly 10 percent of her load to make a transit on August 1. Some of the major shipping companies have responded to these issues by announcing surcharges on bookings transiting the canal. CMA CGM starting September 1 is expanding its Panama Canal surcharge of $300 per TEU to additional routes including trips to the U.S. An extended dry season has reduced the availability of water, required to allow vessels to pass through the canal’s locks, which has triggered a logjam of ships awaiting their turn. Panama typically sees a dry season from January to May, but climate change has made rainfall patterns much less predictable. The result is that the increasingly severe droughts and extreme deluges can push canal infrastructure past its operational limits.
Potential impacts include delays, rerouting, or adjustments to the duration of canal crossings. Additionally, changes in draft restrictions may affect the types of ships Princess Cruises can deploy for these voyages, potentially leading to alterations in onboard amenities and activities. However, the entire journey had to be cancelled due to operational challenges posed by the canal’s low water levels. But he said that more “efficient” water management and a jump in rainfall in November have at least ensured that water levels are high enough for 24 ships to pass daily until the end of April, the start of the next rainy season.
Panama Canal Administrator Ricaurte Vásquez now estimates that dipping water levels could cost them between $500 million and $700 million in 2024, compared to previous estimates of $200 million. Carriers have been forced to offload cargo or consider alternative routes to comply with restrictions imposed by the Panama Canal Authority. The canal is a 65km-passage which about 6 per cent of all global shipping trade passes through. The Panama Canal, which has been strained by drought for months, will increase the number of ships it accepts each day starting in January, thanks to better-than-expected November rains. The CEO of the gas-shipping company Avance Gas said during the company's second-quarter earnings call in September that it had put up $2.4 million to win an auction held by the canal authorities to cut the line.
Decades of deforestation have degraded the landscape’s potential for absorbing flood waters. “For shippers, they need to accept the longer transit times, and the financing of it,” he said. The Panama Canal, the century-old engineering marvel that revolutionized global trade, is being squeezed shut by drought and forcing shippers worldwide to face a painful choice.
But he said that more "efficient" water management and a jump in rainfall in November have at least ensured that water levels are high enough for 24 ships to pass daily until the end of April, the start of the next rainy season. Waterfront Maritime Services also calculates that the waiting time for transits has already risen by approximately two days. Their report shows Neopanamax vessels were waiting last week 10 to 11 days for the northbound transit and as much as 15 to 16 days for the southbound transit.
