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Panama Canal Drought Slowing Grain Shipments

The drought-hit Panama Canal’s transit limits and high fees are driving bulk grain shippers of US crops from the Gulf Coast to Asia into longer routes with higher freight costs to avoid being backed up at one of the world’s main maritime trade routes, Reuters reported, citing traders and industry analysts. The higher costs are coming during peak shipping for US corn and soy suppliers. Ships moving crops have faced wait times of up to three weeks to pass through the canal as container vessels and others that sail on more regular schedules are scooping up the few transit slots available.

Read more about the Panama Canal drought here