Page 74 - TFWA World Exhibit 2024 Special Edition

INSIDER

MSC Marie transited through the Panama Canal in August after seasonal summer rains caused delays in the
important waterway. Photo: Panama Canal Authority

Logistics: more than one trillion in economic losses from Red Sea

and Panama Canal disruptions By Sean P. Gazitúa, President & CEO, WTDC

As president and CEO of a worldwide transit certainty and flexibility, addressing
logistics company and foreign trade zone, I the operational strains caused by the
am continuously monitoring global events drought. A new Long-Term Slot Allocation
that shape the transit times and costs that (LoTSA) goes into effect on October 1,
affect our clients. In my April 2024 article 2024, for all market segments except
for Travel Markets Insider, I explored the liquified gas fuels. And as punctuation
shipping disruptions attributed to the Red that the Panama Canal is now flowing,
Sea crisis and the drought in the Panama the container ship MSC Marie transited
Canal. These themes are just as relevant through the Panama Canal in August 2024.
today, though one concern has subsided This record breaking Neopanamax vessel
while the other has become a new normal, boasts a maximum capacity of 17,640
unfortunately. These events resulted in TEUs.
a staggering $1.25 trillion of total trade In news less fortunate, the Houthi led
disruption from August 2023 through attacks on vessels in the Red Sea and Sea
April 2024, as estimated by Russell Group Sean Gazitúa, President and CEO, WTDC of Aden have not waned. The international
Limited, a London-based data and analytics shipping community is largely avoiding the
company. area altogether, normalizing longer transit TRIED AND TRUE
The seasonal summer rains changed reservoir to supply drinking water to the times southwards around the Cape of Good
the fortunes of the Panama Canal in growing population while supplying the Hope in the interests of safety. Maersk has
June 2024, lifting the waterways from fresh water required to operate the Panama now implemented a ‘Transit Disruption
historically low levels that caused delays Canal at maximum efficiency have since Surcharge (TDS)’ to recover the increased
to ripple across global supply chains. The been announced. New systems for slot costs to the carrier, as have other carriers.
aforementioned Russell Group estimates booking have been implemented to increase Russell Group estimates a sobering $1
that $205 billion of commodities were trillion of trade being disrupted by the
disrupted by the drought, including a $2.2 attacks from July 2023 through May 2024.
billion impact on the flow of Perfumes and As WTDC specializes in worldwide
Cosmetics. logistics for the Duty Free and Travel
As the water levels increased this Retail sectors, we are a pivotal partner
summer, the Panama Canal Authority in our customer’s supply chain.
(ACP) gradually increased vessel crossings Communicating how these global events
and now vessel crossings match pre- will impact our clients on a daily basis is a
drought conditions. Plans for a new vital part of our partnerships.

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