Despite current challenges at the Panama Canal related to increasing restrictions on daily transits at one of the world's busiest waterways, Flexport said in a new update that routing here remains the fastest transit from Asia to the US East, Gulf coasts.

In a recent statement, the freight forwarding service company noted that the Panama Canal has its driest October since 1950, with 41% less rainfall than usual, which is directly impacting the decreased water levels at Lake Gatun, which not only feeds the canal but is also the main water source for 50% of Panama.

Flexport noted that on other updates, the Neo-Panamax draft restriction, which remains at 44 feet, vessel transits are now limited to 31 per day (down from a normal 36), and carriers continue to impose weight limits on shipments between 9 and 14 tonnes.

"There are still no noticeable delays to container transits of the canal, with the current wait time at 0.1 days for a 30-day average container ship," the report said.

"Despite these changes, Panama Canal routing remains the fastest transit from Asia to the US East Coast and Gulf Coast," it added.

For those shipping above 14 tonnes, Flexport said it recommended to use a via Suez service. Or, if time is critical, via US or Canadian West Coast and rail.

In terms of air cargo, the report said October's global air cargo tonnages were nearly on par with last year, showing a mere -1% decrease year-over-year.

Flexport said this represents the smallest monthly drop in 2023, suggesting stabilization rather than recovery. In contrast, we saw larger declines earlier in the year, with -10% in Q1, -6% in Q2, and -3% in Q3.

"During week 43 specifically, tonnages dipped by -1% from the previous week with a modest +1% increase in rates. On a bi-weekly basis, there was a +3% rise in tonnages and rates coupled with a +1% increase in capacity," the freight forwarding service company added.

Regionally, Flexport said significant tonnage increases were seen from Africa to Europe and within Asia-Pacific flows, while Europe to the Middle East and South Asia and North America to Europe saw decreases.

Year-over-year, global chargeable weight dropped -2%, with notable rises from the Middle East and South Asia, Central and South America, and Africa. Overall capacity has risen by +15% compared to last year, with a significant +31% increase from Asia Pacific.

Meanwhile, the report said worldwide average rates are -28% lower than last year but still +36% higher than pre-Covid levels.