Christmas gifts unable to be delivered as Panama Canal shipping route suffers worst drought EVER

Panama Canal

GETTY/PEXELS
Jack Walters

By Jack Walters


Published: 07/12/2023

- 07:35

Updated: 07/12/2023

- 10:26

Disruption could last into 2025 in a major blow to Britons before Christmas

Christmas has been thrown into chaos this year as as a vital shipping route faces its worst-ever drought.

The situation could last several months, leaving many waiting to receive gifts for loved-ones.


Dozens of container ships could face delays of up to four weeks as water levels fall.

The canal, which connects the Atlantic and Pacific Ocean, could impact wider supply chains.

WATCH NOW: Liam Halligan discusses Britons' budgets in the build up to Christmas

Experts have claimed it could result in problems across Europe, including in the United Kingdom.

The knock-on effects could include soaring food and energy prices.

Some fear the drought could impact supply chains into 2025.

Ships aiming to pass through the 50-mile canal face two weeks in line rather than the usual 10 hour holdup.

LATEST DEVELOPMENTS:
Christmas gift boxes near fir tree

Christmas gift boxes near fir tree

GETTY

Some companies have shelled up as much as $4million (£3.18million) to move to the front of the queue and bypass wait times, FOX Weather reported.

Data compiled by the Panama Canal Authority revealed the average wait time in the queue has risen from 4.3 days on November 7 to 11.7 this month.

A number of ships have been forced to take detours, including heading to the Suez Canal in Egypt.

Steve Gordon, the managing director at Clarksons Research, argued transit restrictions at the canal not likely to ease any time soon and that disruption "could linger into 2025".

"Transit restrictions appear likely to remain in place for some time to come, with the rainy season in Panama falling from May to December," he told TradeWinds.

Close-up of female hand tying a bow on Christmas gift

Close-up of female hand tying a bow on Christmas gift

GETTY

Weather forecasts have suggested Panama will experience more dry conditions in the coming weeks.

The drought is being discussed by leaders at COP28 as delegates hope to agree to keep global warming at a 1.5C limit.

Steven Paton, director of the Physical Monitoring Program at the Smithsonian Tropical Research Institute in Panama, said: "This is now our third extreme water deficit in the past 25 years. That is a huge red flag."

Items which could impact Britons include iPhones sent from the west coast of the United States.

David Jinks, head of consumer research at ParcelHero, said: "The result could be shortages of goods and increased prices.

"There will be a significant impact on a range of products typically carried on the canal in containers, including TVs, mobile phones, exercise bikes, PCs, Christmas sweaters and tree lights."

You may like