SUEZ CANAL AND PANAMA CANAL: WHAT ARE THE CONSEQUENCES FOR INTERNATIONAL TRADE AND SEA FREIGHT?

Between geopolitical tensions in the Red Sea and climate constraints in Central America, the major shipping routes remain exposed to disruptions that affect international trade flows, particularly at the two major chokepoints: the Suez Canal and the Panama Canal.

SUEZ CANAL: HOW ARE RED SEA TENSIONS AFFECTING SEA FREIGHT?

In the Red Sea, the situation is gradually improving, albeit cautiously. The major alliances are gradually announcing the return of some of their services to the route via the Red Sea and the Suez Canal.

However, these announcements remain subject to how the security situation in the region develops. Traffic is still below pre-crisis levels and some vessels continue to sail around Africa via the Cape of Good Hope, with the well-known consequences: longer transit times, higher fuel consumption and rising transport and insurance costs.

PANAMA CANAL: HOW ARE CLIMATE CONSTRAINTS DISRUPTING INTERNATIONAL TRADE?

On the other side of the globe, the Panama Canal still has to contend with a lack of rainfall and the risk associated with the El Niño phenomenon. Following a recent improvement in conditions, capacity has been raised to 33 transits per day since 15 October. The Canal Authority aims to maintain at least 32 daily transits during the dry season and states that the permitted draught may be adjusted depending on rainfall and water reserves. Booking a slot therefore remains important to secure a transit date.

At the same time, the Canal Authority plans to build and operate two new container terminals. This programme is part of an expansion project expected to come into service from 2030 onwards.

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