panama-canal

The world watches as the Panama Canal faces an unprecedented drought, but the repercussions ripple beyond just maritime disruptions. The mining industry, central to our global economy, is not immune. And understanding these ripples is pivotal for both mining companies and their suppliers.

NOTE: We would like to confirm the fact that the mining operation “Cobre Panama” has no impact on the water levels of the canal(Source: Panama Canal Authority)

Objective

To understand and quantify the impact of the Panama Canal drought on the mining supply chain, specifically focusing on major mining-related equipment, consumables, and technology suppliers.

Methodology

Using RovSupply, we embarked on a thorough analysis of the supply chain of major suppliers in the mining sector. Our approach:

  1. Data Collation: Gathered data on shipments, breaking them down to individual goods. This included specific metrics like prices, transit routes, and transportation methods.
  2. Analysis: Determined the percentage of trade for each supplier potentially affected by the canal restrictions.

Findings

The chart below provides a comprehensive breakdown of our findings:

Panama Canal - Potential exposure of major suppliers
Source: RovSupply, based on analysis of available shipment level trade data from the last 3 years . Analysis is based on the Number of Items (accounting for the value of the goods) that are shipped on routes that pass through the Panama Canal. % IMPORT trade through the canal (UPSTREAM) = Shipments where the brand is import those items i.e. Upstream of the Mining Supplier. % EXPORT trade though the canal (DOWNSTREAM) = Shipments where the brand is exporting those items i.e. Downstream of the Mining Supplier.

Implications for Mining Companies

Knowledge, as they say, is power. Armed with insights from our analysis, mining companies can:

  1. Foresee Delays: Get a clear picture of which equipment or consumable shipments are at risk of delays, facilitating better contingency planning.
  2. Strategize Purchases: Grasp which suppliers are more prone to disruptions, leading to informed procurement decisions.
  3. Streamline Operations: Modify operations in anticipation of shortages or delays to ensure an efficient workflow.

Implications for Suppliers

Understanding the constraints faced due to the Panama Canal’s situation is a game-changer for suppliers. It is not just data; it’s a roadmap. Suppliers can:

  1. Optimize Routes: Revise transportation routes to circumvent the affected areas, reducing potential delays.
  2. Enhance Customer Communication: Use the insights to keep clients in the loop about potential disruptions, fostering transparency.
  3. Refine Inventory Management: Anticipate potential shortages and recalibrate stock levels, ensuring a consistent supply to customers.


RovSupply: A Glimpse into the Future of Supply Chain Analytics

RovSupply’s platform displaying real-time vessel traffic and congestion metrics around the Panama Canal alongside news specific to the canal.

RovSupply offers more than just data. With features like real-time vessel traffic and congestion metrics, it provides users with a holistic view of maritime activities. This is complemented by the latest news updates on situations affecting major trade ports globally. The above screenshot provides a sneak peek into the platform, focusing on the Panama Canal shipping dashboard.

Conclusion

The Panama Canal’s drought is a stark reminder of the vulnerabilities inherent in global supply chains. While this isn’t the first supply chain shock, nor will it be the last, being equipped with the right tools and expertise to navigate such complexities becomes invaluable. Rovjok, through RovSupply, is at the forefront of delivering these insights, ensuring businesses remain informed and ahead of the curve.

For those keen on diving deeper into RovSupply and its capabilities tailored specifically for the mining industry, visit our RovSupply product page. In these challenging times, clarity is just a click away.