Escalating drought conditions at the Panama Canal, leading to draft and transit limitations, are set to divert cargo through US Pacific Coast gateways in 2024. The Canal's announcement of reduced daily transit allowances due to water shortages poses challenges, prompting cargo owners to consider alternative routes. Container ships, facing slowdowns, are utilizing pre-booked slots, while the container market's low demand mitigates immediate impacts. US East Coast rates are firming, and some shipping lines plan adjustments due to Panama Canal restrictions. Additionally, the threat of a strike by the International Longshoreman’s Association in 2024 adds uncertainty, with potential repercussions on East Coast shipments. Despite market shifts, a swift return to the Pacific Coast is not anticipated, and the Gulf Coast gains import market share. The article underscores the complexity of factors influencing global shipping routes and the delicate balance between labor negotiations and infrastructure challenges.

SOURCE: GOOGLE