This time last year, the Panama Canal was making headlines with its extended wait times and a large backlog of ships due to drought conditions. As for 2024, there have been several announcements and updates in recent weeks regarding water management and other operations at this crucial waterway.
Booking Slot, Draft Increases
After reaching the low 20s late last year, daily transits are almost back to pre-drought levels. As of Aug. 5, the number of booking slots has gradually climbed to 35, according to the Panama Canal Authority’s Advisory To Shipping No. A-20-2024. One more booking slot would push the canal back to its normal daily average prior to the drought.
In addition, the maximum authorized draft for ships traversing the Neopanamax Locks has been increased to 49 feet as of early August, according to Advisory To Shipping No. A-26-2024.
New Reservoir?
After a recent ruling by the Panama Supreme Court, authorities for the Panama Canal spoke of a newfound possibility to build a water reservoir on the Indio River, according to the Associated Press. Panama Canal Authority Administrator Ricaurte Vásquez Morales estimated the project would take six years and cost around $1.6 billion.
A new reservoir would provide the canal, which relies on fresh water, with a more stable supply of water during the dry season and periods of low rainfall. This, in turn, will allow the canal to maintain its average number of transits despite unpredictable weather conditions.
New Slot Allocation Method
Announced earlier this month through Advisory To Shipping No. A-25-2024, the Panama Canal will introduce a Long-Term Slot Allocation Method for Neopanamax ships. Booking slot packages with a specific number of weekly or monthly slots will be offered to various market segments. The packages will be announced on the Panama Canal website, and auctions will begin Sept. 2.
