
- The on-going, El Niño induced, drought in Panama has resulted in increased restrictions in canal crossings. Effective September 3rd, the draft will be further restricted to 47.5 feet and vessel transits will be reduced to 9 in the Panamax lock and 25 in the original lock. The number will decreased to 23 in the original lock effective September 15th.
- As an alternative to the Panama Canal, Mexico has invested $4B in its Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT). The CIIT will be a 190 mile rail connection from the Gulf to the Pacific. Mexican officials are touting a 7-hour rail transit and a 24-hour port-to-port transit time.
- Finally, in the on-going dispute between Panama and CK Hutchison over the country voiding its contracts providing terminal operations at both ends of the canal, the terminal operating group is seeking $1.5B in damages.