(Trinidad Guardian) The ongoing delay of containerised ships crossing the Panama Canal is beginning to affect the local agriculture sector, as the shelves of some chemical and fertiliser importers and small shops have been running bare.
At least two companies, CAS Agricultural Supplies and Manuchar Trinidad Ltd, have been feeling the pinch of the lingering delays and warned of lower yields for farmers and higher cost of food for consumers if the drought in the waterway persists next year.
Both companies have been impacted by profit losses and dwindling customer base as a result of the pile-up of vessels waiting to transit the canal due to lowering water levels.
They believe climate change is beginning to impact global commerce.
The Panama Canal, which is one of the world’s key shipping routes, is being hobbled by a lack of rainfall which has dried up two lakes that feed its artery, plunging water levels so low the Panama Canal Authority has cut the number of ships passing through the waterway from 36 to 24.
Next February, only 18 vessels will be allowed to cross the route.
The reductions have already caused hundreds of container ships to clog up in front of the essential links of international trade which has been posing a problem for every commodity and manufactured product. Some vessels are also being allowed to carry up to 40 per cent less cargo.
The Canal connects the Pacific and Atlantic Oceans allowing ships to avoid sailing around the tip of South America.
The unprecedented dry season has created a crisis at the Canal which trades about US$ 270 billion of goods each year. Those ships carry items ranging from canned and refrigerated foods, lumber, steel, machinery and equipment, grains, clothing, toys, household appliances, furniture, petroleum chemicals and agricultural supplies and commodities.
The cost of shipping goods, experts believe, is likely to increase worldwide while efforts to get goods on the shelves of stores this Christmas could be slowed.
Annually 14,000 ships use the Canal representing six per cent of world trade and is a key link in the supply chain to stores worldwide.
CAS Agricultural Supplies director Karl Seepersad said he has been waiting for four freight containers of chemicals which he purchased from China three months ago.
The Freeport-based company sells its items wholesale and retail. Seepersad said they are out of herbicides, pesticides, fungicides, insecticides and fertilisers.
“Our shelves are practically empty,” Seepersad complained to Guardian Media during a telephone interview recently.
The unavailability of products, he said, has been affecting the operations of his business. Seepersad also pointed out that if farmers do not have chemicals to protect their crops from weeds, diseases and pests, their losses would be tremendous.
“Once yields are reduced farmers will have fewer crops on their hands and this could trigger the cost of produce to go up. If this trend continues next year, we can expect higher costs of food. Next year it’s going to be a very difficult year. I really don’t know.”
Seepersad said some of his customers have been paying more for these products elsewhere.
Large-scale sweet potato farmer Sahadeo Boondoon confirmed that the price of chemicals has been constantly “going up” in the last few months.
“The prices jumped during the Russia and Ukraine war and it never went down. I don’t know if the issue in the Panama Canal has been contributing to the price hike. We are feeling the pinch in our pockets … every day you have to pay more for chemicals and fertilisers,” Boondoo said.
The Sunday Guardian also reached out to other farmers in Plum Mitan and Aranguez who noticed an increase in costs.
Business development manager of Manuchar Trinidad Ltd, Nicholas Jennings admitted that their chemical company has been experiencing three weeks of delay in getting supplies.
“That has been causing revenue loss, a drop in customer confidence and our ability to guarantee delivery dates. We have also lost some of our customers.”
Manuchar imports between 100 and 200 containers of chemicals annually from China and India.
They distribute to 30 companies locally.
