The Panama Canal Authority (PCA) is immediately increasing the maximum authorized draft for vessels transiting the waterway to 49ft (14.94m) as water levels have improved in Gatun Lake.

The increase in draft restrictions will allow vessels to carry more cargo per trip as many had to carry less than a full load to meet the previous draft restrictions.

The region has been through an intense drought that caused the PCA in 2023 to lower allowable drafts and to limit the number of vessels permitted to transit each day, a first since the canal formally opened in 1914.

Restrictions have gradually eased over the past few months and are approaching the average daily transits of 36-38/day seen prior to impacts from the drought.

The better conditions at the canal are likely to improve transit times for vessels traveling between the US Gulf and Asia, as well as between Europe and countries on the west coast of Latin America.

This should benefit chemical markets that move product between regions, as shown in the following chart.

WAIT TIMES FOR NON-BOOKED VESSELS
Wait times for non-booked southbound vessels ready for transit have been relatively steady at around two days, according to the Panama Canal Authority (PCA) vessel tracker.

As of 7 August, the tracker showed wait times of 0.4 days for northbound traffic and 2.1 days for southbound traffic.
Source: ICIS