Gene Seroka, executive director of the Port of Los Angeles, reported that disruptions in the Panama Canal and Suez Canal have redirected about 5% more cargo to his facility. The port processed 1.04 million TEUs in September, marking its highest monthly volume in 118 years. This surge follows persistent challenges in key waterways, with congestion and delays forcing shippers to seek alternative routes.
El Niño-related drought conditions have worsened transit times through the Panama Canal. The waterway cut daily lock availability from 11 to nine slots in August, later increasing to 10 in October as rainfall improved. Still, delays remain severe: between January and late September 2026, 69 container ships waited more than 100 hours for passage, accounting for 3.3% of total transits—up from just 0.6% in the same period of 2025.
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MarineTraffic data shows spikes in weekly vessel shares during April and July, coinciding with reduced draft levels. With El Niño expected to peak between October and December and another dry season forecast for 2027, concerns over canal reliability persist. Seroka observed that Asian shippers are increasingly diverting cargo allocations from traditional canal routes to Los Angeles.
September’s import figures showed the port’s role as a diversion hub. Loaded imports reached 545,696 TEUs, a 19% increase from the prior year, while exports rose 10% to 125,751 TEUs. Empty container volumes also hit a record 371,206 TEUs, the highest monthly total in the port’s history. Rising fuel costs, driven by the conflict in Iran, have doubled over eight months, adding financial pressure on shippers. Higher transit expenses and delays have pushed carriers to favor shorter routes, with Seroka noting discussions with shipping lines and manufacturers in Asia reflect a clear preference for direct allocations to Los Angeles. The strategic shift shows how operational inefficiencies and cost burdens are reshaping routing decisions across global supply chains.
