Drewry has an insightful article on the problems the Panama Canal is facing due to the extended drought that has compromised its water supply.
The article discusses the water levels and also the prospects for a variety of shipment types, such as LNG and agricultural. The effect on trade patterns could be marked in a number of cases.
Drewry produces high-quality research and it’s must reading if you have an interest in bulk transport
Drewry, 12 Sep 2023
Tagged Bulk carrier challenges, Bulk shipping impact, Climate change effects on shipping, Impact on Bulk Shipping Routes, Logistics, panama canal, Panama Canal Authority, Panama Canal water levels, Panama drought, Shipping route disruptions, supply chains, sustainability, Understanding the Panama Drought, Water conservation measures
The Copenhagen-based Global Maritime Forum (GMF) has completed a study that concludes ammonia-powered gas carriers could compete effectively as soon as 2026.
The findings are based on a route from the US Gulf Coast to northwestern Europe. The route has been approved in principle by DNV, a classification society and expert in assurance and risk management. The ship would fuel only in the US, and make the most of subsidies from the US government via the Inflation Reduction Act (IRA), and the EU’s Fit for 55 measures. So, not subsidy-free!
The design is completed and could be used for a shipyard tender.
Gas carriers are important today because of the Ukraine War sanctions and actions by the EU to eliminate gas imported from Russia. The EU is now a prominent destination for US export gas.
Paul Bartlett | Sep 01, 2023
Ammonia-fuelled gas carriers could compete effectively by 2026
Posted in Logistics, Shipping, Sustainability
Tagged Ammonia-powered gas carriers, Ammonia-powered ships, DNV classification society, EU gas import from Russia, EU's Fit for 55 measures, Gas carriers study, Global Maritime Forum (GMF), innovation, Logistics, ocean shipping, sustainability, Sustainability initiatives, technology, US export gas to the EU, US Gulf Coast to Northwestern Europe route
The drought in Panama has reduced water in the canal. Panama has imposed draft limits on ships. Large container ships sometimes need to offload cargo on one side and have it sent by rail to the other side.
Waiting lines of ships have built on each side of the canal, waiting to traverse it. The delays can be up to 5 days at present, according to the data from eeSea, a forecasting and scheduling company based in Copenhagen, Denmark.
These delays are already causing ships to avoid the canal by using the Suez Canal or even sailing around the Cape of Good Hope to get to Asia. These are much longer routes, but do not have delays. If the issues continue, cargoes will begin to be diverted at the start. That will be bad news for East Coast US ports.
Update: the second article below indicates that ships waiting are in the hundreds, but not as high as some have reported. It’s still a big loss of business for the Panama Canal.
Destine Ozuygur, head of operations, eeSea 14/08/2023
Ship queue grows at both ends of Panama Canal and congestion builds
Sam Chambers August 23, 2023
Panama Canal Authority sets the record straight on congestion figures
Supply Chain Digest Port Technology International Marine Link
Supply Chain and Logistics 