Ongoing restrictions at the Panama Canal due to historic drought conditions will cause a slight increase in container shipping costs and supply chain delays, but the impact will be modest as long as the restrictions are short-lived. Since July 30, the Panama Canal Authority (PCA) has restricted the total number of ships passing through the canal per day to a maximum of 32, down from the normal daily average of 36 crossings, in an effort to conserve water amid record-low rainfall. Since April, the authority has also maintained a decreased depth limit on ships of 44 feet (down from 49.9 feet), which has forced some vessels to carry less cargo and some to transport some of their cargo to the other side of the canal by road or rail. Amid the restrictions, over a hundred ships are now reportedly waiting off the coast to pass through the canal. According to...
