Posted by Alejandro VillalobosAugust 25, 2023LOGISTICSVisits 1
The Panama Canal could face increased pressure as US wholesaler inventories dwindle. American consumers are reviving, but the water problem on the road could extend until 2024.
The ongoing disruptions in the Panama Canal have raised concerns about the ability of US wholesalers to replenish their inventories in a timely manner due to shipping delays. If difficulties continue, there is an imminent threat of product shortages during the most critical shopping period of the holiday season.
In particular, the continuing efforts of the Panama Canal Authority to conserve fresh water amid dry conditions, produced as a consequence of the El Niño phenomenon, have contributed to a substantial backlog of ships waiting to transit the canal. Measures such as reserve restrictions and adjustments to vessel weight requirements have exacerbated the existing backlog.
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