# Panama Canal drought to delay grain ships well into 2024 | Reuters

> Bulk grain shippers moving U.S. Gulf crops to Asia are taking longer routes and paying higher freight costs to avoid congestion and record transit fees at the drought-hit Panama Canal. Wait times for grain vessels rose from about five to seven days in October to around 20 days by late November. The Baltic Dry Index spiked to a 1.5-year high.

- Date: 2023-12-11 · published 2023-12-11T12:00:00.000Z
- Category: logistics · region US · magnitude medium
- Page: https://feedsoft.ai/events/32462-panama-canal-drought-to-delay-grain-ships-well-into-2024-reuters
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Ocean Grain Freight](https://feedsoft.ai/c/OCEANFRT.md)

## Why it matters

Longer routes and scarce canal slots raise freight costs for U.S. corn and soybean exports to Asia, which lowers FOB prices for U.S. origin and supports Brazilian and other origin competitiveness.

## Read by commodity

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

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2024-08-14 | [Gas and grain ships shun Panama Canal after drought disruption](https://feedsoft.ai/events/17006-gas-and-grain-ships-shun-panama-canal-after-drought-disruption.md) | -0.7% | +0.6% |
| 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 | 2026-10-16 | [Panama Canal Adds One Slot, but Grain Freight to Japan Is Up 36%](https://feedsoft.ai/events/16756-panama-canal-adds-one-slot-but-grain-freight-to-japan-is-up-36.md) | -1.2% | — |
| 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 | 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% |
| SOY | 2024-08-14 | [Gas and grain ships shun Panama Canal after drought disruption](https://feedsoft.ai/events/17006-gas-and-grain-ships-shun-panama-canal-after-drought-disruption.md) | -3.2% | -0.9% |
| SOY | 2023-08-21 | [Focus: Historic drought, hot seas slow Panama Canal shipping \| Reuters](https://feedsoft.ai/events/34460-focus-historic-drought-hot-seas-slow-panama-canal-shipping-reuters.md) | +1.3% | -3.4% |
| 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% |

## Sources

- reuters.com: https://www.reuters.com/markets/commodities/panama-canal-drought-delay-grain-ships-well-into-2024-2023-12-11/

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