Bloomberg reported that the Panama Canal, which handles more than 200 million metric tonnes of cargo a year, has opened after rain forced the first closure of the waterway since 1989.

The Panama Canal Authority said in an e mailed statement that the 80 kilometers long canal, connecting the Pacific and Atlantic oceans, opened after 17 hours. Ships were stopped after the main river and lake used by vessels reached record levels.

The canal last closed when the US invaded the Central American nation to oust then President Mr Manuel Noriega. Shutting the waterway obliges ships to sail around the tip of South America, resulting in longer trips and higher costs.

Mr Amrita Sen, a London based analyst with Barclays Capital, said that the length of the delay should mean no impact for shipping. Daily rates to hire panamax ships, the largest carriers of bulk commodities such as coal and iron ore that can fit the canal’s locks, were little changed at USD 19,028.

According to the Panama Canal Authority, the canal, first transited in 1914, is used by about 14,000 ships a year and employs 9,000 people. Ships carry about 90% of world trade, handling 7.7 billion tonnes of cargo in 2008.

(Sourced from www.bloomberg.net)