More than 200 ships are in a traffic jam outside the Panama Canal, showing we can't get through a year without big boats getting stuck

Rebecca Cohen
Updated ·2 min read
19

  • More than 200 ships are stuck in a traffic jam outside the Panama Canal.

  • An unprecedented drought is causing rare conditions that make it harder for the vessels to pass.

  • In the past three years, at least one big boat has gotten stuck in a body of water each year.

More big boats stuck in small canal.

Over 200 ships are stuck in a major traffic jam on either side of the Panama Canal, with some ships trapped for more than three weeks waiting to get through, according to data from Project44 reviewed by Insider.

Most of the stuck vessels are bulk cargo ships or gas carriers, according to the "Today" show.

The ships are stuck because of an unprecedented drought in Panama, The Wall Street Journal reported. The canal relies on rainwater to replenish its sources, but a lack of rain makes it difficult for ships to cross.

The Panama Canal Authority has placed a higher premium on the heaviest and largest ships that have to pass, meaning companies are able to transport fewer goods, which could lead to emptier shelves and higher prices, according to data from Project44.

The canal typically processes 40% of all US container traffic, Alix Partners reported. The traffic jam is causing a slowdown in consumer goods delivery and is already stoking concerns over the holiday supply chain. Some shippers might experience a supply-chain bottleneck and delays in deliveries due to the conditions, according to Alix Partners.

Authorities have implemented further restrictions, including lowering the number of booking slots for large ships to 14 from 23, according to Project44, and lowering the number of ships allowed to pass through the canal from a range of 36-to-34 to 32.

But the stuck ships should come as no surprise; it's the third year in a row in which the world has marveled at an unfortunate logjam of maritime traffic.

In the summer of 2021, the Ever Given, a humongous container ship, got stuck in the Suez Canal for six days, blocking one of the world's most vital shipping routes.

Less than a year later, in March 2022, the Ever Given's sister ship, the Ever Forward, got stuck in the Chesapeake Bay for more than a month.

Read the original article on Business Insider