A drying Panama Canal threatens traffic jams

A historic drought has threatened the important trade waterway since the beginning of this year, forcing ships passing through the Panama Canal to reduce their cargo to avoid getting grounded.

According to the Panama Canal Authority, the situation could further escalate due to El Nino and create supply chain delays around the world.

To avoid a catastrophe like when a ship got stuck for days in the Suez Canal in 2021, Panama Canal operators yesterday asked vessels with hulls 43.5 feet below the water’s surface to lose some weight.

The move will add to congestion as cargo might need to be split over multiple ships.

America is the largest user of the canal. Around 40% of US container traffic passes through it every year.

A significant percentage of imports and exports face the risk of delays.

What is happening?
Panama is one of the wettest countries in the world, but now droughts are becoming more frequent, per the canal operators. Accumulated rainfall in the area around the canal in the first five months of the year was 47% below the historical average.

Such a low level is a problem since the Panama Canal loses more than 50 million gallons to the sea every time a ship passes through it. The lost water is adjusted by a nearby reservoir, which has seen reduced water levels.

Some containerships would have to carry almost 40% less cargo to pass through or choose alternative routes like the Suez Canal, which is longer.