PANAMA CANAL AUTHORITY WARNS RESTRICTIONS WILL REMAIN IN PLACE THROUGHOUT 2024
The Panama Canal Authority (ACP) has claimed that the tide has turned in its ongoing battle to get back to normal operations, following a debilitating year of drought-induced cuts to drafts and transits. “Current forecasts indicate that steady rainfall will arrive in late April and continue for a few months. If this remains the case, the Canal plans to gradually ease transit restrictions, allowing conditions to fully normalize by 2025,” the ACP stated in a release yesterday, adding: “Recent precipitation and progress secured by the Canal’s ongoing water-saving efforts are turning the tide.” Three weeks ago, the ACP added three extra slots per day at its panamax locks, taking the total daily maximum transits to 27, still more than 10 shy of the waterway’s normal maximum, but a sign that the worst was over.
HOUTHIS CLAIM BALLISTIC MISSILE ATTACK ON U.S.-CREWED BOXSHIP
On Tuesday, U.S. forces successfully defended a Maritime Security Program boxship from Yemen’s Houthi rebels in the Gulf of Aden. The Houthi group claims that it is motivated to attack vessels linked to Israel or to Israel’s allies, citing the ongoing conflict in Gaza. The group consistently describes MSC-operated ships as “Israeli” for uncertain reasons; one of MSC’s owners was born in Haifa, but the firm itself is based in Switzerland and the founder is Italian. According to vessel data firm Windward, voyages in the Red Sea operated by the top six ocean carriers dropped by 50 percent in the first quarter because of persistent Houthi attacks. Maersk and MSC still transit the general area about 70-80 times a month, according to Windward’s analysis.
EAST COAST CONTAINER RATES ARE GETTING CHEAPER DESPITE BALTIMORE SHUTDOWN
As predicted by many shipping analysts, the shutdown of the Port of Baltimore has not significantly affected container rates to the U.S. East Coast, and other nearby seaports have had adequate handling capacity to pick up the slack. Far from a pandemic-like price spike, the rates on core Asia-USEC routes have actually declined since Baltimore’s inner harbor shut down, according to freight intelligence firm Xeneta. Spot rates from the Far East to the U.S. Northeast are down by about one percent since the bridge collapsed, according to Xeneta, and are running at $5,400 per forty-foot box. (This is approximately half of the late-pandemic peak.) From Europe to the U.S. Northeast, spot rates are down eight percent. The changes in container rates are unrelated to any changes in pricing for ro/ro shippers. The Port of Baltimore is the busiest hub for shipping autos and rolling equipment in the United States, and these ro/ro cargoes have no direct connection to containerized freight.
SALVORS REMOVE 38 CONTAINERS FROM DALI IN BALTIMORE
Salvors have removed approximately 38 containers from Dali, the containership which remains pinned under the remains of the Francis Scott Key Bridge in Baltimore. Removal of containers on the bow, some of which are visibly damaged after the ship allided with the bridge on March 26, is a necessary step in gaining access to the steel and road surface laying across the vessel. Two small channels have been opened at either end of the bridge, and while marine traffic is still limited, 69 vessels have transited through since their creation, said unified command. A previous announcement said a target had been set to open a 35-foot depth channel for container ships up to 4,500 teu by the end of April. The current channels are 14 foot and 11 foot deep. “There has been incredible progress this week towards our goal to open the limited access deep draft channel,” said Col. Estee Pinchasin, commander, US Army Corps of Engineers, Baltimore District, Unified Command. “Our amazing team of local, state, federal and community responders remain focused on the safe and efficient removal of debris and wreckage from the federal channel and waterway.
