# Panama Canal further limits ship depth | World Grain

> The Panama Canal Authority will restrict neo-Panamax container ships to a 43.5-foot draft from June 25, down from 44.0 feet, because drought has lowered water levels. Some large vessels have already cut container loads by about 25% since May, and the canal received 47% below-average rainfall in the first five months of the year.

- Date: 2023-06-22 · published 2023-06-22T12:00:00.000Z
- Category: logistics · region Global · magnitude medium
- Page: https://feedsoft.ai/events/35378-panama-canal-further-limits-ship-depth-world-grain
- 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

Grain is the second-largest commodity moving through the canal, so shallower drafts raise freight costs and reduce cargo per ship on US Gulf to Asia routes. This adds to upward pressure on export logistics costs for corn, soybeans and sorghum.

## Read by commodity

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

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 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 | 2023-12-11 | [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 | 2024-01-05 | [US Gulf shipping costs climb for corn, soy \| World Grain](https://feedsoft.ai/events/16574-us-gulf-shipping-costs-climb-for-corn-soy-world-grain.md) | -1.5% | -2.4% |
| CORN | 2022-10-26 | [Water woes tighten capacity for ag shippers \| World Grain](https://feedsoft.ai/events/16673-water-woes-tighten-capacity-for-ag-shippers-world-grain.md) | -1.2% | -3.3% |
| 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% |
| 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 | 2023-12-11 | [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% |

## Sources

- world-grain.com: https://www.world-grain.com/articles/18678-panama-canal-further-limits-ship-depth

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