Important Takeaways:

• Huge backlog of 200 ships are stuck trying to enter the Panama Canal as they wait WEEKS amid slowed traffic due to drought: Delays set to wipe $200M off profits and cause spike in US grocery and parcel prices
• More than 200 ships are stuck on both sides of the Panama Canal after authorities capped the number of crossings because of a serious drought.
• The large vessels, thought to be carrying millions of dollars’ worth of goods, are locked in a traffic jam with some waiting for weeks to cross.
• Vessel-tracking data highlights the extent of the issue with hundreds of ships, mainly bulk cargo or gas carriers, seen waiting near entrances to the canal on the Pacific and Atlantic oceans.
• The number of daily transits through the canal has been capped at 32 by water authorities in a bid to conserve water.
• Panama is set to lose $200million in revenue from the delays and it could cause a spike in US grocery and parcel prices as extra fees are hiked on to shipping costs.
• Without enough rain, the ship transits are cut and the lucky ones that cross pay hefty premiums.
• This increases transport costs for cargo owners like American oil as well as Asian importers and gas exporters.

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