Here's an update on the Panama Canal situation

We would like to inform you of ongoing operational challenges at the Panama Canal that are impacting global shipping. Due to significantly reduced water levels and the effects of the El Niño weather pattern, the Panama Canal Authority (ACP) has introduced new restrictions to conserve freshwater and maintain safe operations. These measures follow a sharp decline in water inflows and a nationwide state of emergency in Panama.

The ACP has reduced daily transit capacity and implemented additional draft limitations and tighter transit caps as water levels continue to be monitored.

These restrictions are creating several operational challenges across the industry:

• Increased difficulty in securing transit slots due to reduced daily capacity.
• Lower allowable drafts reduce cargo loading ability for many vessels.
• Priority auctions, surcharges, and alternative routing are driving higher operating costs.
• Transit bottlenecks are causing significant delays across multiple trade lanes.
• Limited ability to adjust schedules or reroute vessels efficiently.

To minimize disruption and maintain service reliability, we are taking the following steps:

• Maintaining close communication with the ACP and local partners to secure optimal transit opportunities.
• Identifying and implementing feasible recovery actions to mitigate schedule impacts.
• Continuously assessing alternative routings and network adjustments to reduce delays and maintain cargo flow.

We remain committed to supporting your planning needs with as much transparency as possible. For the latest information relevant to your cargo and region, please refer to our News Portal, where we will continue to provide operational updates as conditions evolve.