Global fresh fruit shipments affected by Panama Canal drought

The drought affecting the Panama Canal has resulted in significant disruptions to maritime operations, impacting various industries, including the fresh fruit sector, according to local media.

The challenges in this crucial waterway have compelled ships to queue for days or even weeks, as the low water level restricts the number of daily transits. This has led to increased costs for shippers, either due to prolonged routes or heightened fees. Moreover, there is even the option to pay millions of dollars to bypass the line, provided a reserved ship withdraws. Alternatively, some vessels are choosing to circumnavigate Africa and South America or navigate through the congested Suez Canal.

Fresh fruit, mainly from Chile and Peru, is typically shipped to the East Coast of the United States and Europe via the Panama Canal. The cherry season in Chile, for instance, is set to peak in January, and products like grapes, plums, nectarines, and blueberries may face challenges reaching the market due to extended transit times.

Some shipping companies are already reserving alternative routes to bypass the canal in 2024. The situation underscores the broader repercussions of climate-related disruptions on global shipping and the strategic considerations being made by industry players.