By Elesha George
Despite growing concerns over the persistent drought conditions in the Panama Canal region, shipments of goods into Antigua and Barbuda remain unaffected, according to statements by Port Manager Darwin Telemaque.
In a recent interview, Telemaque assured that the supply chain from Miami, which handles the majority of the goods destined for Antigua and Barbuda, has not experienced any significant disruptions due to the drought conditions.
The Panama Canal, a vital maritime route connecting the Pacific and Atlantic Oceans, has been grappling with reduced water levels caused by an extended period of drought. Experts have raised concerns about potential impacts on global trade and supply chains, as the canal is a critical passage responsible for transporting about 40% of the world’s goods, including some destined for Caribbean countries.
However, Telemaque emphasised that the current situation has not led to any significant complications in the flow of shipments into Antigua and Barbuda. “We’ve not seen a major backing up of traffic,” he stated. “We view what is happening as a potential challenge that could impact us, but as of now, there is no immediate impact on the flow of traffic into the Caribbean, and more specifically into Antigua.”
He went on to explain that most of the supplies entering Antigua and Barbuda come from Miami, and it is that direct link which has so far helped mitigate any disruptions caused by the drought in the canal. “Although some of the traffic comes through the canal, we’re not seeing the impact on Miami yet, and therefore we will not feel it,” he noted.
According to the Statistics Division’s website, the United States is Antigua and Barbuda’s largest trading partner. In its latest statistics – the last quarter of 2021 – imports to the US alone were valued at EC$203 million. And while exports from the US suggest that the impact of the drought measures on American manufacturers, retailers, and consumers remains minimal at this time, this does not allay concerns for Antigua and Barbuda, as the potential fallout from canal disruptions in Miami could exert significant pressure on the flow of goods into the Caribbean. “It goes through a process before we get it, and once Miami starts feeling the impact, we’re going to be under some pressure here,” Telemaque cautioned.
The Panama Canal Authority (ACP) has been working to manage its water levels and maintain the operational capacity of the canal despite the challenging conditions. Last week, Erick Cordoba, acting Water Division Manager at ACP told Observer that the loss of water has made it difficult for larger ships to navigate. As a result, ACP has limited the number of ships allowed to pass daily, and has implemented water conservation measures to manage its trade operations and its ability to supply water for human consumption in Panama.
Telemaque commended ACP’s efforts stating, “Currently, the canal is taking steps that have been quite innovative to allow for the trafficking of vessels on either side of the canal, and as such what we’re seeing is that they are able to manage the flow.”
It is important to note that the canal is facing some of its worst drought conditions in recent history during its wet season. Cordoba warned that if this trend continues, the worst conditions will appear at the end of the dry season during March/April 2024.
But while concerns persist, for now, Antigua and Barbuda appears to be weathering the storm, maintaining a steady flow of goods through their established supply chain with Miami.
