The French attempted to build a canal through Panama, however, tropical diseases killed approximately 20,000 workers and the French attempt went bankrupt.  In 1902 the US Senate voted to build the Canal through Panama.  Panama was part of Colombia and the Colombian congress did not accept the US terms.  President Roosevelt sent warships to Panama City on the Pacific and Colon on the Atlantic side helping Panama to gain independence on November 3, 1904.  The United States agreed to guarantee the independence of Panama and Panama gave the US a 10-mile strip of land for the canal.

The United States built the canal and it was opened on August 15, 1914.  In 1999 ownership and control of the Panama Canal were transferred to the country of Panama.

Panama has now built the NeoPanamax locks which expand the canal’s cargo capacity allowing it to accommodate the largest vessels.  These NeoPanamax locks recycle water with water saving basins.

 However, droughts and water shortages have caused capacity restrictions.  The canal system with its locks requires millions of gallons of freshwater from the local lakes.  Because of recent droughts caused by changing weather patterns the lakes water levels are low and enough water is not available to handle the influx of ships.  With the problems in the middle east more ships are taking this route to reach the US East coast and Europe from Asia.

Christmas Night Inc. has been shipping our containers from the Philippines through the Panama Canal for the last 12 years.  Previously we shipped from the Philippines via Singapore and the Suez Canal.  With larger ports available in China we found the Eastern route more economical.  At this time the water shortages are causing long delays for the ships carrying our containers through the Panama Canal.  Most of our containers got through before these restrictions became an issue but our last 4 containers are being held up for weeks.  This situation is only going to get worse as the maximum draft for cargo vessels is reduced.  There will be a series of draft reductions a 2 foot reduction (49.5 feet to 47.5 feet) is scheduled this week.  With an additional series of reductions planned through early September.