Important waterway for global trade, restricted traffic! Rates have gone up! These goods are going to go up in price, too

Felipe ArgoTT, Professor at PanAmerican University in Panama: Fewer containers means higher average freight rates and higher commodity prices, and the freight will be divided among fewer goods, so consumers will pay more, which has an impact on the overall economy.

At present, there are three main channels for goods from East Asia to the East coast of the United States, of which about one-fifth rely on the Panama Canal for transport, which generally takes about 24 to 26 days. Now, due to the extended shipping cycle, the delivery of goods is delayed, which will directly affect the price of goods during the year-end shopping season in North America.

Sousa, President of the Association of Users of the Free Trade Zone in Colon, Panama: The year-end sales season starts from September to October every year, and this huge change will be reflected at that time, because the longer delivery time of goods may also cause a gap in the market, and we will certainly see this situation in September.

About 80 kilometers long, the Panama Canal connects the Atlantic and Pacific oceans, and nearly 6 percent of global trade is transported through the canal. In fiscal year 2022, more than 14,000 ships carried 518 million tons of cargo through the Panama Canal, contributing $2.5 billion to Panama's coffers.

This year, the Panama Canal Authority has tightened draft limits and reduced the number of ships allowed to pass due to a prolonged drought. The most affected are bulk carriers with higher draft, followed by finished container ships.

Rodriguez: More than 14,000 ships pass through the Panama Canal each year, but that number is expected to decrease as more restrictions are introduced due to the ongoing drought, affecting revenue from the transosoic route.