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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.
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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.
Long delays at Panama Canal after drought hits global shipping route
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.
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With climate change bringing a new normal to our planet ,drought in the tropics is an also a contributing factor to cruising in the future. While our boarding didn’t take 7 hours, I can tell you it was extremely disorganized and slow even with only 300 passengers. Similarly, in the early 2010s, the canal faced concerns over water scarcity, prompting water-saving measures and operational adjustments to mitigate the effects of diminishing water reserves. These experiences underscore the canal’s vulnerability to environmental factors and highlight its ongoing efforts to manage its water resources sustainably. The new cuts announced Wednesday by authorities in Panama are set to deal an even greater economic blow than previously expected.
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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.
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As of March 18, 2024, the water level of Gatun Lake sat at 80.5 feet (24.5 meters), over 7 feet (2.1 meters) below its maximum operating level of 88 feet (26.8 meters). Consequently, the canal’s operational capacity has been significantly affected, with container vessels restricted to draft depths of 44 feet (13.4 meters) instead of the usual 50 feet (15.2 meters), resulting in reduced water consumption in the locks. They pay an extra fee for this service and the cruise lines pay a further fee for being guaranteed a daytime transit. Water levels would need to be extremely low for the Canal to refuse these additional revenues. Ships anchored waiting for a Canal transit is a daily occurence, but those ships turn up on spec, register and wait their turn.
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"We are currently seeing an increase in arrivals," the canal's deputy administrator Ilya Espino said on Thursday. Rainfall is about 30 to 50 per cent below normal and the area around the canal is experiencing one of the two driest years in the country's 143 years of keeping records, according to data from the Smithsonian Tropical Research Institute (STRI). It connects the Atlantic and Pacific Oceans and its construction significantly reduced the journey for ships travelling between the oceans. The Court of Appeal decision in Smit Salvage BV & Ors v Luster Maritime SA & Anr (The ‘Ever Given’) highlights the challenges of negotiating contracts in rapidly changing environments, particularly in cases involving maritime casualties.
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The artificial waterway, which spans 82 kilometres, features a series of locks that raise and lower vessels to match the water level of Gatun Lake, the canal’s primary water source. Canal authorities attributed the drought to the El Niño weather phenomenon and climate change, and warned it was urgent for Panama to seek new water sources for both the canal’s operations and human consumption. The same lakes that fill the canal also provide water for more than 50% of the country of more than 4 million people. A severe drought that began last year has forced authorities to slash ship crossings in the Panama Canal by 36 per cent. STRI's Steven Paton said a potential early start to Panama's dry season and hotter-than-average temperatures, typical of major El Niño events, could increase evaporation from Gatun Lake and result in near-record low water levels by March or April 2024.
These adjustments could have significant ramifications for the cruise industry and the communities reliant on tourism revenue from canal-related activities. Efforts to address the water level drop-off include pumping seawater or redirecting rivers into Gatun Lake. However, these measures are complex and have potential implications for Panama’s drinking water supply, as Gatun Lake is the region’s primary source of freshwater. The combination is having far-reaching effects on global trade by delaying shipments and raising transport costs.
The incident has cost Baltimore the loss of a key bridge and massive disruption to the US supply chain. For the cargo on board, the cargo owners face the prospect of massive additional costs as a consequence of the declaration... Weather conditions worsened by the arrival of the El Niño phenomenon also forced the ACP to reduce the draft (the submerged part of the ship) from a maximum of 50 feet to 44 feet.
Panama Inaugurates First-of-its-kind Cruise Ship Terminal On Pacific Coast - Marine Insight
Panama Inaugurates First-of-its-kind Cruise Ship Terminal On Pacific Coast.
Posted: Thu, 28 Mar 2024 07:00:00 GMT [source]
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.
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.
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.
