# Panama Canal restrictions' impact on supply chains | McKinsey

> McKinsey analyzes how restrictions on daily transits through the Panama Canal, caused by severe drought lowering Gatun Lake, could reroute millions of tons of cargo. The Panama Canal carries about 2.5% of global seaborne trade, with more than 14,000 transits in 2023.

- Date: 2024-01-19 · published 2024-01-19T12:00:00.000Z
- Category: logistics · region Global · magnitude medium
- Page: https://feedsoft.ai/events/32022-panama-canal-restrictions-impact-on-supply-chains-mckinsey
- 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

Transit caps force cargo onto longer routes or other ports, raising freight costs and delaying US grain and oilseed shipments to Asia, which can widen regional price spreads for feed ingredients.

## Read by commodity

- SOY: neutral
- CORN: neutral
- OCEANFRT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2019-07-12 | [Panama Canal Authority suspends latest draft restrictions on ships - FreightWaves](https://feedsoft.ai/events/57985-panama-canal-authority-suspends-latest-draft-restrictions-on-ships-freightwaves.md) | -3.2% | -7.0% |
| CORN | 2025-02-06 | [BIMCO: Panama Canal Transits Remain 10% Below Average Despite Lifted Drought Restrictions](https://feedsoft.ai/events/16964-bimco-panama-canal-transits-remain-10-below-average-despite-lifted-drought.md) | +1.4% | -7.2% |
| CORN | 2025-02-07 | [Transits Through the Panama Canal are Down 10%  \| SupplyChainBrain](https://feedsoft.ai/events/16969-transits-through-the-panama-canal-are-down-10-supplychainbrain.md) | +1.5% | -6.3% |
| CORN | 2021-02-01 | [Panama Canal Congestion: A Commodity Market Case Study Panama Canal case study: Minimising the impact of elevated congestion in Commodity markets \| Kpler - Feb 01, 2021](https://feedsoft.ai/events/48517-panama-canal-congestion-a-commodity-market-case-study-panama-canal-case-study.md) | +0.8% | -2.0% |
| CORN | 2023-09-22 | [US ag exporters at most risk from Panama and Mississippi restrictions - The Loadstar](https://feedsoft.ai/events/33986-us-ag-exporters-at-most-risk-from-panama-and-mississippi-restrictions-the.md) | +1.4% | +3.0% |
| SOY | 2025-02-06 | [BIMCO: Panama Canal Transits Remain 10% Below Average Despite Lifted Drought Restrictions](https://feedsoft.ai/events/16964-bimco-panama-canal-transits-remain-10-below-average-despite-lifted-drought.md) | -2.8% | -4.1% |
| SOY | 2025-02-07 | [Transits Through the Panama Canal are Down 10%  \| SupplyChainBrain](https://feedsoft.ai/events/16969-transits-through-the-panama-canal-are-down-10-supplychainbrain.md) | -2.9% | -4.7% |
| SOY | 2021-02-01 | [Panama Canal Congestion: A Commodity Market Case Study Panama Canal case study: Minimising the impact of elevated congestion in Commodity markets \| Kpler - Feb 01, 2021](https://feedsoft.ai/events/48517-panama-canal-congestion-a-commodity-market-case-study-panama-canal-case-study.md) | -0.2% | +1.6% |

## Sources

- mckinsey.com: https://www.mckinsey.com/industries/logistics/our-insights/how-could-panama-canal-restrictions-affect-supply-chains

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