Panama Canal Jam

Recently Rebecca Cohen drew attention to a traffic jam at the Panama Canal that is expected to last an astonishing 10 months. The reason? Blame it on the drought conditions. This means that ships are moving at a slow pace through the canal and guess what? The waiting time has increased by a 280% since June as reported by Project44, a startup specializing in supply chain visibility.

Now here's the part; it's not just about longer travel times for ships. It actually has an effect on our holiday shopping. Jenna Slagle from Project44 warns us that we might start seeing some ", out of stock" signs and brace yourselves for higher price tags too. Yes when shipping costs go up it directly affects our wallets.

For those who love getting into the nitty gritty details; ships used to zip through the canal in around two and a half days.. Now? They are taking a nine and a half day journey instead. Moreover with the possibility of increased prices imposed by the Panama Canal Authority on ships passing through shippers might consider using boats which could further drive up costs of goods.

So what's behind all this canal chaos? It seems that Panama is experiencing dry conditions like never before. The canal typically depends on rainfall. It appears that Mother Nature has taken a summer vacation.

For all you shoppers and investors out there here's a heads up. Keep an eye on prices. Maybe consider starting your holiday shopping a bit earlier than usual.. For our friends in the real estate industry understanding global events like this can provide valuable insights into market trends and consumer behavior.

Original article, by Rebecca Cohen. Read it HERE.