Maersk will use rail transport

Maersk will use rail transport to circumvent restrictions of the Panama Canal, this is reported by the railway transport news portal Railway Supply.

The Danish shipping giant plans two cargo loops on both sides of Panama, utilizing a “land bridge” to extend South American shipments amid current canal limitations.

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The OC1 route between Oceania and America will now involve two separate loops, with cargo destined for the latter being unloaded in Balboa, Panama, and cargo bound the other way unloaded in Manzanillo.

Goods from either end will then be transported 80 km by rail across Panama to ships on the opposite shore, avoiding the need to navigate the problematic canal.

The company also mentioned that northbound vessels stopping in Philadelphia and Charleston won’t experience delays due to the change, while southbound vessels may face longer journeys.

Maersk’s decision follows months of restrictions on the vital trade route, affected by record droughts in 2023, making it the second driest year in the canal’s history.

This led the Panama Canal Administration to reduce capacity along the route.

Additionally, while not directly related to Maersk’s land bridge usage, the company is impacted by the indefinite redirection of vessels from the Red Sea and Suez Canal, another crucial trade route, due to the escalation of conflict involving Houthi rebels in the region.

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