FREIGHT MARKET UPDATE | WEEK 27 | 2024

PANAMA CANAL DRAFT RESTRICTIONS MODIFIED

Earlier this month, the Panama Canal Authority announced a significant change: they will be increasing the number of daily booking slots to 35, starting in August. This decision marks a reversal of the rules implemented last year, which restricted daily shipping traffic through the canal to 18 vessels at one point in October 2023. Notably, larger vessels classified under the Panamax category will also benefit from extra booking slots. This adjustment aims to improve the flow of maritime traffic through this critical waterway, enhancing its capacity and efficiency.

ASIA: TIGHT CAPACITY AND PORT CONGESTION

The global shipping industry continues to grapple with challenges stemming from the Red Sea crisis and persistent container shortages. These issues have strained capacity and led to vessel diversions around the Cape of Good Hope, increasing travel times and affecting the availability of containers for new shipments. Additionally, prolonged vessel wait times at congested ports have further exacerbated the problem, resulting in port omissions and rolling pools. These disruptions underscore the need for strategic logistical planning to mitigate delays and maintain supply chain fluidity.

PORT OF BALTIMORE OPERATIONS UPDATE

On June 10, 2024, the main shipping channel into Baltimore’s port fully reopened to its original depth and width, following the March 26 collapse of the Francis Scott Key Bridge. The collapse had severely restricted maritime traffic into the harbor. This reopening comes after a massive cleanup effort, during which crews removed an estimated 50,000 tons of steel and concrete from the Patapsco River. The restoration of the shipping channel is expected to significantly enhance the port’s operational capacity, providing a much-needed boost to maritime activities in the region.