Drought In Panama Causes Huge Backlog Of Ships

• More than 200 ships are stuck on both sides of the Panama Canal after authorities capped the number of crossings because of a severe drought. The large vessels, thought to be carrying millions of dollars worth of goods, are locked in a traffic jam with some waiting for weeks to cross. 
• Vessel-tracking data highlights the extent of the issue with hundreds of ships, mainly bulk cargo or gas carriers, seen waiting near entrances to the canal on the Pacific and Atlantic oceans.
• The number of daily transits through the canal has been capped at 32 by water authorities in a bid to conserve water. Panama is set to lose $ 200 million in revenue from the delays and it could cause a spike in US grocery and parcel prices as extra fees are hiked onto shipping costs.
• The entrances on both sides of the Panama Canal are jammed with some ships backed up for more than 20 days. Some shipowners have resorted to rerouting their journeys to avoid the backlog. The canal uses three times as much water as New York City daily and needs rainfall to replace it. 
• However, the rainy season is yet to arrive in Panama and the canal is going through its driest spell in more than a century. Restrictions for the number of vessels passing through have been extended until September 2. Without enough rain, the ship transits are cut and the lucky ones that cross pay hefty premiums. This increases transport costs for cargo owners like American oil as well as Asian importers and gas exporters. 
• Ricaurte Vásquez Morales, the administrator of the Panama Canal, warned the restrictions could remain in place for the rest of the year. 

(Source: Daily Mail)