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This week, the Panama Canal Authority finally announced that, due to the easing drought conditions, there are further signs of a rise in the water level of the Panama Canal, and it will gradually ease vessel restrictions. 

On March 26th local time, in the early hours of the morning, the container ship "Dali" collided with the Francis Scott Key Bridge in Baltimore, USA, causing the collapse of most of the bridge and multiple people and vehicles to fall into the water.

The Global Port Tracker, released monthly by the National Retail Federation (NRF) and Hackett Associates, indicated in its latest March report that U.S. imports in the first half of this year will increase by 7.8% compared to the first half of 2023.

On February 23,2024, the Federal Maritime Commission (FMC) announced its final regulations targeting the collection of Demurrage and Detention (D&D) fees by carriers and terminal operators, implementing new rules to combat overcharging practices.

Despite the serious disruptions caused by the Red Sea crisis to container shipping, consumer demand remains sluggish. At the same time, there is a significant excess of capacity in the liner industry.

Ongoing conflicts in the Middle East have led to a significant drop in shipping capacity, affecting industries worldwide. Houthi militia attacks in the Red Sea have forced shipping companies to suspend routes, causing delays and increased costs.

In the midst of the turbulent situation in the Red Sea region and the ripple effects of issues such as vessel rerouting, delays, and cancellations, the shipping industry is beginning to feel the impact of tight capacity and container shortages.

The efficiency of a vessel's voyage depends on the type of ocean weather it encounters. Waves, wind, and currents create resistance that a ship must overcome by consuming more fuel. This reduction in efficiency results in increased costs. Among these factors, waves are the primary source of added weather resistance, leading to undesirable vessel motion, such as pitching and rolling.

In order to mitigate the impact of severe drought, the Panama Canal Authority (ACP) recently updated its shipping restriction order. The number of daily ships passing through this major global maritime trade channel will be reduced from 32 to 31 ships starting in November.

Given that next year will be drier, there may be further restrictions.

Canal drought intensifies.