LOGISTICS: Maersk to resume Panama Canal transits for OC1 service on 10 May

HOUSTON (ICIS)–Global container shipping major Maersk will resume Panama Canal transits for its OC1 service beginning 10 May, ending its “two-loop” setup it established in January because of transit restrictions brought on by a persistent drought.

Maersk ceased transiting the canal in January for the service connecting Asia-Pacific and the US East Coast and instead transported containers across Panama using railroads.

The company said it is taking the action because of the onset of the rainy season in the region and after the Panama Canal Authority (PCA) added three more daily slots based on the present and projected water levels in Gatun Lake.

The PCA said it is optimistic that traffic through the canal could return to normal in 2025 as current forecasts indicate that steady rainfall will arrive later this month and continue during the rainy season.

The PCA said all future plans remain contingent on how much rainfall comes and water levels in Gatun Lake.

Peter Sand, chief analyst at ocean and freight rate analytics firm Xeneta, said he thinks there is still a long way to go before trade lanes via the Panama Canal become normal.

“There may be projections for increased rainfall but at the moment they are just that – projections,” Sand said. “If water levels do not rise then it will be interesting to see how this plays out and whether Maersk can stick to this timeline.”

Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), which are shipped in pellets.

Some liquid chemicals are also shipped on container ships using isotanks.

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