The Marseille-based shipping liner CMA CGM Group, a global player in shipping and logistics, is set to apply a USD 150/teu Panama Adjustment Factor, in response to the ongoing restrictions taken by the canal authority to reduce the number of vessels transiting per day.
The shipping line said the series of measures introduced by the waterway authority this year combined with an increase in the Canal Tariff implemented earlier in the year, are taking a “severe toll on CMA CGM’s operations.”
The Panama Canal continues to suffer from severe drought, and consequently the authority has recently announced further restrictions.
During the second quarter of 2023, and despite several water conservation measures, the canal draft was reduced from 14.94 to 13.41m.
The lack of precipitation over the summer months has forced the Panama canal authorities to reduce the number of vessels transiting per day.
As a consequence, by January 1st 2024, the booking windows for transiting the neopanamax locks will be reduced by -30%.
“These restrictions combined with an increase in the Canal Tariff implemented earlier in the year, are taking a severe toll on CMA CGM’s operations.
“Therefore, please note CMA CGM will apply a USD 150/TEU Panama Adjustment Factor starting January 1st, 2024,” CMA CGM said.
Earlier this month, Maersk said it continues to be able to secure timely canal transits and is taking necessary precautions to minimize any potential impact on operations.
It told customers: “We are closely collaborating with the PCA to secure the necessary transit slots. By scheduling transits between 30 and 14 days before arrival, depending on vessel size and direction, we aim to safeguard our transit schedule.”
“We review weather conditions and operational waiting times in previous ports to secure a transit date that aligns with our schedule and ensures a smooth transit through the Canal.
“We have continued access to limited rail connectivity, enabling an alternative container transportation option between the Atlantic and Pacific gateways,” Maersk added in a note to its customers.
With the Panama Canal implementing sharp cuts in the number of booking slots for transits in the coming months tankers and dry cargo ships are set to be squeezed out of using the Canal.
In its report, shipbroker Poten & Partners predicts that the stark reduction in slots will push many of the tramp vessels, including tankers and dry cargo ships, away from the Panama Canal.
This will lead to more ton-mile demand and possibly changes in segment utilization as longer hauls may stimulate the use of larger vessels, as the shipbroker says.
