MAERSK plans to eliminate Panama Canal vessel transits on a north-south service between Oceania and the US east coast, citing the ongoing drought that has reduced ship transits and container carrying capacity through the waterway, reports New York's Journal of Commerce.
The Copenhagen-based carrier said that its OC1 service linking Australia and New Zealand with the ports of Philadelphia and Charleston will instead use a 50-mile rail service across the Isthmus of Panama to handle cargo between the Atlantic and Pacific.
As a result, the OC1 service will be broken into two loops, maersk said.
The Pacific loop will drop off northbound cargo at Balboa for the land bridge service via rail to Manzanillo, where the Atlantic loop will retrieve the cargo and resume waterborne service.
The carrier did not say whether the nearly 26-day transit time from New Zealand to Philadelphia would change due to the land bridge. It said that while northbound cargo will not be delayed, southbound cargo may see some delays.
Other Maersk services from Asia to the US east coast will continue to use the Panama Canal.
Along with the Panama Canal, Maersk said the OC1 would omit Cartagena, Colombia, as a call.
It also directed shippers to the option of its PANZ service between Oceania and the US west coast.
Maersk stated the decision to omit the Panama Canal crossing on OC1 was based on current and projected water levels in Gatun Lake, which provides the water to raise and lower vessels in the canal's locks.
The Panama Canal Authority (ACP) recently stated Gatun Lake was at 81.6 feet, compared with a five-year average water level for January of 86.9 feet.
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The Copenhagen-based carrier said that its OC1 service linking Australia and New Zealand with the ports of Philadelphia and Charleston will instead use a 50-mile rail service across the Isthmus of Panama to handle cargo between the Atlantic and Pacific.
As a result, the OC1 service will be broken into two loops, maersk said.
The Pacific loop will drop off northbound cargo at Balboa for the land bridge service via rail to Manzanillo, where the Atlantic loop will retrieve the cargo and resume waterborne service.
The carrier did not say whether the nearly 26-day transit time from New Zealand to Philadelphia would change due to the land bridge. It said that while northbound cargo will not be delayed, southbound cargo may see some delays.
Other Maersk services from Asia to the US east coast will continue to use the Panama Canal.
Along with the Panama Canal, Maersk said the OC1 would omit Cartagena, Colombia, as a call.
It also directed shippers to the option of its PANZ service between Oceania and the US west coast.
Maersk stated the decision to omit the Panama Canal crossing on OC1 was based on current and projected water levels in Gatun Lake, which provides the water to raise and lower vessels in the canal's locks.
The Panama Canal Authority (ACP) recently stated Gatun Lake was at 81.6 feet, compared with a five-year average water level for January of 86.9 feet.
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