27/04/2024

Maersk Adopts Rail Solution

Maersk Adopts Rail Solution Amid Panama Canal Drought.

In response to the decline in large ship crossings due to the Panama Canal’s low water levels, A.P. MollerMaersk shifts its Oceania-Americas (OC1) service to utilize the Panama Canal Railway. The 47-mile railroad provides an alternative to cargo ships, connecting Australia and New Zealand with Philadelphia and Charleston, SC. Maersk’s move creates two rail loops, ensuring uninterrupted cargo flow despite canal limitations. As stated by Maersk, vessels that
used the Panama Canal will now use a “land bridge,” highlighting the strategic adjustment to address environmental constraints.

“Pacific vessels will turn at the Port of Balboa in Panama, dropping off cargo heading for Latin America and North America, and picking up cargo heading for Australia and New Zealand,” Maersk said in a news release. “Atlantic vessels will turn at Panama’s Port of Manzanillo, dropping off cargo heading for Australia and New Zealand and picking up cargo heading for Latin and North America.”

Maersk said it does not expect delays for any northbound vessels on routes stopping in Philadelphia and Charleston, but southbound vessels may experience some delays. 

As part of the adjustments, the OC1 route will also omit Cartagena, Colombia, the country’s main export port, Maersk said.

Source: Mahoney, N. (2024, January 16). Maersk to use freight rail to circumvent Panama Canal Amid Drought. FreightWaves.

https://www.freightwaves.com/news/maersk-to-use-freight-rail-to-circumvent-panamacanal-amid-drought

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