Panama Canal Diversions Raise Cold-Weather Bunker Risks, Gard Warns
Key Takeaways
- •Gard warned that vessels diverting via the Drake Passage or Strait of Magellan in winter may face bunker-handling and machinery problems if fuel-heating arrangements are inadequate for cold climates.
- •El Niño-linked drought has reduced freshwater availability in the Panama Canal watershed, leading to restrictions on vessel transits and draft.
- •The Panama Canal Authority cut daily transit slots at both the Neopanamax and Panamax locks from September 3, with a further Panamax reduction scheduled for September 15.
- •Gatun Lake's stored freshwater both fills the locks and supplies drinking water, so dry periods force caps on transits and draft rather than prioritizing larger vessels.
- •Diversions via Cape Horn or the Strait of Magellan add thousands of nautical miles compared with the Canal route, increasing voyage duration, costs, and fuel consumption.
Shipowners weighing routes around South America in response to Panama Canal draft limits and reduced daily transits should carefully assess cold-weather risks to bunker handling and machinery, according to marine insurer Gard.
Vessels operating in the Drake Passage or the Strait of Magellan during winter may encounter bunker-related problems, particularly if their fuel-heating arrangements are not suited to prolonged operations in colder climates, Siddharth Mahajan, team leader for loss prevention in Asia at Gard, wrote in an article published last week.
"Owners should therefore ensure that bunker management procedures, machinery limitations, and cold weather practices are carefully reviewed before undertaking such voyages," the article states.
The warning comes as reduced rainfall linked to recurring El Niño conditions has affected water availability in the Panama Canal watershed, prompting restrictions on vessel transits and draft. The Panama Canal Authority reduced daily transit slots at both the Neopanamax and Panamax locks from September 3, with a further cut at the Panamax lock scheduled for September 15. The watershed relies on Gatun Lake, whose stored freshwater both fills the locks and supplies drinking water, which is why sustained dry periods force the authority to cap transits and draft rather than simply prioritizing larger vessels.
Some operators are considering southern routes as an alternative to the Canal, but Gard noted that such voyages carry additional weather, navigational and operational risks, alongside potentially higher voyage costs and fuel consumption. The Drake Passage in particular is known for severe conditions, and diversions via Cape Horn or the Strait of Magellan add thousands of nautical miles compared with the Canal route, extending voyage durations accordingly.
Cold-weather bunker risks are a familiar concern for vessels trading Northern Europe, the Baltic, and the Great Lakes, where regulations and industry guidance have long called for preparing fuel systems, machinery spaces, and deck equipment for sub-zero temperatures. Gard's article effectively extends that discipline to Southern Hemisphere routes that operators may be taking for the first time.
Source: Ship & Bunker
