International Logistics

Around 70% of vessels using the Panama Canal require a draft of 44 ft., which is the current limit, down from 50 ft. at the beginning this year. If the draft is lowered further, majority of vessels won’t be able to transit with full loads. Those adjustments are now required.

Effective November 1, 2023 in the Panama Canal, a new booking condition will be implemented called Booking Condition 5. While this condition is in effect, Panamax plus vessel will not be allowed transit and daily capacity will be adjusted to 31 vessels per day. Read more for additional rules and regulations.

As of September 12, the daily transit capacity of the Panama Canal remained at 32 ocean vessels per day, and 116 vessels were waiting to pass in Panama. Panama Canal authority has reported these restrictions could remain for the next 10-12 months.

As of July 30, daily transit capacity of the Panama Canal was adjusted to 32 ocean vessels per day, down from previous restriction of 38 vessels per day. Panama Canal draft restrictions have had little to no impact on exports from U.S. east and gulf ports as vessel utilizations remain light, allowing ships to sit higher in the water.

The Port of Haiphong is undergoing a dredging project from early July to the middle of August. With dockworker strikes at West Canadian ports now ended, delays are expected to last for 39-65 days. Instability will continue into Q4 2023 due the fragile economy. Expect to see a continued decline of Asian imports as U.S. supply chains lean towards regional partners to cross borders.

The Public Service Alliance of Canada (PSAC) has been on strike since April 19, 2023. However, this strike has not directly impacted vessel, rail or truck operations in Canada. While overall trade capacity has been reduced due to blank sailings, space for TPWB cargo remains readily available. U.S. East Coast capacity is abundant as supply outstrips demand.

The Public Service Alliance of Canada (PSAC) has been on strike since April 19, 2023. However, this strike has not directly impacted vessel, rail or truck operations in Canada. Vancouver waiting time significantly reduced to 3 days; stable weekly coverage is expected. The U.S. monthly international trade deficit decreased in March 2023 from $70.6 B to $64.2 B.

Across the major East-West head haul trades: Transpacific, Transatlantic and Asia-North Europe & Med, 51 cancelled sailings have been announced between April 10 – May 14, out of a total of 675 scheduled sailings, representing an 8% cancellation rate. During this period, 51% of the blank sailings will be occurring in the Transpacific Eastbound, 45% on Asia-North Europe and Med, and 4% on the Transatlantic Westbound trade.