Shippers warned that Panama Canal issues will escalate in 2024: El Niño, which refers to the unusual warming of sea surface temperature in the eastern Pacific Ocean,is expected to further lower water levels at the Panama Canal, prolonging wait times and hiking costs in 1H 2024, Seatrade Maritime reports, citing Xenata chief analyst Peter Sand. The canal has been forced to limit new reserved slots to 14 vessels per day, down from 16 vessels previously, with waiting times for large container ships rising to over 20 days, the Wall Street Journal reports. Vessel-tracking data shows more than 200 ships currently waiting to transit, the WSJ adds.

Air cargo faces turbulence as demand shifts: Air cargo initially surged amid Covid-19 border closures and supply chain disruptions, but now faces overcapacity and falling rates, as passenger planes’ expanding belly capacity continues to threaten freighters, Reuters reports. This shift has caused cargo rates to drop by nearly a third over the past year. Several pilots have also left to occupy vacancies at passenger airlines amid the rebound in travel, compounding challenges for the USD 200 bn air cargo industry, which handles a third of global trade by value.

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