A.P. Moller-Maersk will use trains to avoid the drought-hit Panama Canal for some of its vessels, the Danish shipping giant said as low water levels have caused one of the world’s main maritime trade routes to reduce crossings.
The Panama Canal Authority has reduced the amount and weight of vessels passing through based on current and projected water levels in Gatun Lake, the rainfall-fed principal reservoir that floats ships through the canal’s lock system, Maersk, one of the world’s largest container shipping companies, said.
The company’s OC1 service, connecting Australia and New Zealand with the U.S. east coast cities of Philadelphia and Charleston via the Panama Canal, will now create two separate loops, one Atlantic and one Pacific.
“The vessels that utilised the Panama Canal before will now omit the Panama Canal and use a “land bridge” that utilises rail to transport cargo across the 80 km (50 miles) of Panama to the other side,” the firm said in an advisory to its customers.
Panama’s drought, worsened by the El Nino weather phenomenon, has decreased transit slots at the canal, already forcing fuel tankers and grain shippers to take longer routes to avoid congestion.
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