Panama Canal expansion construction workers strike averted

Ships will be forced to reduce their cargo because the maximum allowable draft will be set at 11.89 meters (39 feet), down from the current level of 12.04 meters (39.5 feet).

El Nino is a climatic phenomenon that results in periodic warming of the tropical Pacific Ocean that alters the rainfall pattern in many regions across the planet.

The Panama Canal said it will lower the maximum allowable draft of ships passing through the inter-oceanic waterway starting September 8 due to an El Niño-triggered drought.

A threatened strike by workers constructing the expanded Panama Canal has been averted according to the Panama Canal Authority (ACP).

The new development is expected to affect 18.5% of the vessels transiting through the canal. The new rule would be imposed from 16 September.

The authority will also continue to monitor and manage the water levels of Gatun and Alhajuela Lakes and in case of further restrictions, it will provide at least four week’s advance notice to give enough time to customers for proper planning.

Work on the ambitious expansion of the Panama Canal risked grinding to a halt again because of the labor dispute.

Lock filling and subsequent testing activities are expected to take three months, and the expansion programme is scheduled for completion next year.

The Panama Canal, meanwhile, will be re-launched in eight months time with a new set of locks and channels able to handle post-panamax container ships, which are now routed to the US East Coast via the Suez Canal.