Panama Canal Delays Highlight the Need for Sustainable Solutions

A slew of recent news articles cover the current delays and long queues at the Panama Canal, resulting from transit restrictions implemented by the Panama Canal Authority. These restrictions limit the number of vessels passing through each day to 32 (down from the normal authorization of 36), a measure implemented in response to "climate variability." While that might not seem like a major difference, it could cause delivery delays and economic concerns down the line. And from an environmental standpoint, the climate change problems that caused these delays will only worsen because of their occurrence.

The Panama Canal: A Historical Carbon Emissions Reducer

The Panama Canal provides a shortcut through the narrow isthmus of Panama, enabling ships to avoid the lengthy and fuel-intensive journey around the southern tip of South America. This efficiency has not only saved time and costs for global shipping, but also significantly reduced carbon emissions associated with maritime transport. Since its establishment in 1914, the Panama Canal has profoundly contributed to carbon emissions reductions, preventing more than 850 million tons of carbon dioxide, according to the Panama Canal Authority .

With disruptions to its normal operations, the emissions that it works to offset are also impacted. The reduction in transit capacity due to drought-related freshwater shortages leads to longer waiting times or alternate routes for shippers, which in turn increases fuel consumption and emissions. This paradox highlights the complexity of fighting climate change while dealing with the effects of it.

Two Consequential Problems Intensify

Longer Alternate Routes

With fewer ships permitted to pass through the canal, shippers will be forced to find alternate routes, which will be longer, and hence, cause more emissions. While these alternatives address immediate shipping needs, they pose additional environmental challenges due to increased travel distances and impacts on fragile ecosystems.

Longer Wait Times

As vessels queue up, wait times at the canal extend, and waiting unnecessarily increases emissions from shipping. A recent publication in the international journal Transportation Research Part D: Transport and Environment indicates that operational inefficiencies at maritime chokepoints like the Panama Canal require speed adjustments that directly affect greenhouse gas emissions. Achieving operational efficiency and implementing proper scheduling systems becomes much trickier with the freshwater availability concerns that result from climate variability. The delays counter the Panama Canal's historical mission to curb emissions by providing a more direct route.

Innovative Solutions for a Greener Future

It's certainly harder to fix climate problems when we're already knee-deep in them, since we're forced to react to current impediments while trying to enable new sustainable solutions. But the only way forward is to continue incrementally working on innovative solutions for overcoming climate change, and that’s what the Panama Canal Authority continues to do, despite the climate challenges it’s facing.

To work towards maritime sustainability, the Panama Canal Authority implemented the Green Connection Environmental Recognition Program , an initiative designed to acknowledge and encourage environmentally responsible practices among vessels transiting through the canal. This program recognizes and rewards ships that demonstrate a commitment to reducing their environmental impact and adhering to sustainable practices, including the usage of clean fuels. The Panama Canal aims to reach carbon neutrality by 2030 and recognizes the need for phasing out fossil fuels and bringing in clean energy solutions to help achieve the goal.

At EGXFuels, we aim to produce green ammonia for use in maritime shipping. By 2031, we plan to produce enough green ammonia to transport 5.5 million TEU annually—the equivalent of 63% of the Panama Canal’s total TEUs in 2021. With this level of production, we'll save more than 100 million metric tons of carbon dioxide from being released into the atmosphere each year. We plan to provide sustainable fuel for maritime vessels around the globe, including those that pass through the Panama Canal, in hopes of displacing fossil fuels, and ultimately, mitigating climate change.

Steering the Ship Forward

The challenges faced by the Panama Canal due to climate variability restrictions underscore the delicate balance between working towards sustainability while reacting to existing climate problems. As the maritime industry navigates these challenges, innovative solutions like green ammonia implementation provide another step towards reducing emissions and a more sustainable future. It's essential for industries, governments, and organizations worldwide to collaborate on strategies that address both short-term obstacles and long-term climate goals, ensuring a healthier planet for future generations.