# Gas and grain ships shun Panama Canal after drought disruption

> The Panama Canal is struggling to win back LNG and grain traders after a historic drought forced it to cap crossings last July. Only 13 LNG ships crossed in July, fewer than half the July 2022 count, and dry bulk transits fell 35% to 129. Canal officials expect near-capacity operations by September.

- Date: 2024-08-14 · published 2024-08-14T12:00:00.000Z
- Category: logistics · region Panama · magnitude medium
- Page: https://feedsoft.ai/events/17006-gas-and-grain-ships-shun-panama-canal-after-drought-disruption
- Commodities: [Ocean Grain Freight](https://feedsoft.ai/c/OCEANFRT.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

Longer routes around the Cape raise freight costs and reduce competitiveness of US Gulf grain and LNG shipments to Asia, which can weigh on US export basis and support freight rates.

## Read by commodity

- SOY: bearish ▼
- CORN: bearish ▼
- OCEANFRT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2023-12-11 | [Panama Canal drought to delay grain ships well into 2024 \| Reuters](https://feedsoft.ai/events/32462-panama-canal-drought-to-delay-grain-ships-well-into-2024-reuters.md) | +1.0% | -0.7% |
| CORN | 2023-06-22 | [Panama Canal further limits ship depth \| World Grain](https://feedsoft.ai/events/35378-panama-canal-further-limits-ship-depth-world-grain.md) | -8.7% | -14.9% |
| CORN | 2023-12-30 | [Panama Canal backup forces detours for Asia-bound grain ships \| World Ports Organization](https://feedsoft.ai/events/32463-panama-canal-backup-forces-detours-for-asia-bound-grain-ships-world-ports.md) | -2.0% | -3.6% |
| CORN | 2019-04-30 | [Drought hits Panama Canal shipping, highlights climate fears \| AP News](https://feedsoft.ai/events/59496-drought-hits-panama-canal-shipping-highlights-climate-fears-ap-news.md) | +0.9% | +8.9% |
| CORN | 2020-01-15 | [Panama Canal adds fees, changes booking as it fights drought \| Supply Chain Dive](https://feedsoft.ai/events/54986-panama-canal-adds-fees-changes-booking-as-it-fights-drought-supply-chain-dive.md) | +0.3% | -2.4% |
| SOY | 2023-12-11 | [Panama Canal drought to delay grain ships well into 2024 \| Reuters](https://feedsoft.ai/events/32462-panama-canal-drought-to-delay-grain-ships-well-into-2024-reuters.md) | +0.9% | -4.8% |
| SOY | 2023-06-22 | [Panama Canal further limits ship depth \| World Grain](https://feedsoft.ai/events/35378-panama-canal-further-limits-ship-depth-world-grain.md) | -4.2% | -1.3% |
| SOY | 2023-12-30 | [Panama Canal backup forces detours for Asia-bound grain ships \| World Ports Organization](https://feedsoft.ai/events/32463-panama-canal-backup-forces-detours-for-asia-bound-grain-ships-world-ports.md) | -4.2% | -5.8% |

## Sources

- ft.com: https://www.ft.com/content/15ed10db-71d2-45ed-bd69-6f584b97b623?syn-25a6b1a6=1

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.