By Maria Kalamatas | July 25, 2025

Section: International / Maritime & Trade Routes

Panama City, July 25 — Major container shipping alliances are rerouting vessels and adjusting rotations as Panama Canal authorities impose new draft restrictions, cutting maximum allowable transits due to a recent drop in water levels following unseasonal drought conditions.

“Some services are now forced to offload cargo at feeder ports or switch to smaller vessels,” said Luis Herrera, a shipping planner for a Mediterranean-Asia alliance. “Every adjustment adds cost and time, but there’s no avoiding the limits.”

Global supply chain implications

The Canal, a vital link for U.S. East Coast–Asia and European trade, is operating at reduced daily transits, leading to longer wait times and added fuel consumption for vessels forced to detour around the Cape of Good Hope.

“This is the third time in six months that restrictions have tightened,” Herrera explained. “It disrupts planning for carriers and shippers alike.”

Mitigation strategies

Carriers are exploring staggered loading, split sailings, and temporary rate surcharges to cover delays. Some forwarders are shifting time-sensitive cargo to intermodal solutions via U.S. West Coast ports despite higher inland costs.

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