Panama Canal to impose draft restrictions

Drought conditions due to lack of rainfall in Central America have decreased water levels in the the Panama Canal, prompting ocean container lines to lighten vessel load plans out of Asia on all water services to the US East and Gulf Coasts. Some carriers have initiated increased Panama Canal surcharges of up to $500 per container in June to offset the loss in vessel utilization. Such a shift in container economics could become a factor in the nearly two-year trend of cargo volume shifting from the US West Coast to East and Gulf Coast ports.