In September of this year, official managing the Panama Canal announced that there would be a reduction in the number of vessels allowed to traverse the transshipment waterway daily in response to an ongoing drought which has led to a reduction in the fresh water supply needed to operate the locks.

The number was reduced to 31 vessels daily as opposed to the 36-38 vessels that are allowed under normal operation.

Speaking with Our Today, Mark Lumley, general manager of Lannaman and Morris Shipping Limited confirmed that as it now stands, the restrictions have not negatively impacted their operations.

He explained that usually, the main company whose cargo they handle does not traverse the canal in its entirety. This means they usually offload their cargo onto smaller feeder vessels which then take the goods to Jamaica.

This process usually creates a surplus of goods that are waiting to be loaded onto the said smaller vessels and therefore though there is a reduction in the amount of large cargo vessels being let through, the excess from having to wait to load them onto feeder vessels means that goods are coming in at the same rate, according to Lumley.

He did posit that should the restrictions continue, there is definitely a possibility that business will be impacted. He hypothesises that should the restrictions last significantly longer, then it will affect the turnaround time of the vessels, as they will have to to cross the canal, which would significantly influence the rate at which the goods come into the island.

“This of course, would put a dent in availability of certain goods and would cause disruptions in many sectors that rely on the cargo to meet their respective sector demands.” Lumley suggested.

Logistics manager at Caribbean Producers, Richard Morris, has also said that overall business has remained steady despite the announcement.

He has said that, “the majority of our shipments come from North America, Europe, and Asia hence limited to no product is affected by the delays of the Panama Canal.”

He also mentioned that to the extent that there is an impact caused by the restrictions and there is no alternate route or supplier, CPJ will be forced to await arrival “and plan for disruption both internally and in conjunction with our affected customers.” In general, however, he has not expressed any major disruptions caused by the recent restrictions.

Opposition Spokesperson on Commerce, Technology and Innovation, Dr. Andre Haughton spoke to Our Today about the restrictions at the canal and shared similar observations.

Haughton said the reduction in the amount of ships is significant but he cannot currently speak to a significant impact on Jamaica’s imports so far. “The restrictions are notable but there does not seem to be any quantifiable negative impact that I cant speak to at this time.” Haughton noted.

Additionally, Haughton has called on the government to give more priority to the improvement of our logistical channels in general. He suggested that things like restrictions at the Panama Canal are out of the control of the government but that there are things they should be doing to aid in the improvement of Jamaica’s logistical infrastructure.

These improvements should be aimed at facilitating the efficient movement of goods from the respective ports to distribution centres. He went on to say that to optimise logistics, the government must seek to collaborate with relevant stakeholders to improve the processes and flow of goods throughout the country.

“As the Opposition Spokesperson on Commerce, Technology and Innovation, I continue to emphasise the importance of adopting digital solutions to better manage and track the movement of goods. Jamaica must leverage technology and innovation to improve supply chain visibility and operational efficiency. We have to encourage the adoption of technology solutions to enhance supply chain visibility, streamline operations, and minimize disruptions” said Dr. Haughton.