Panama Canal's Ship Crossings Slashed Amid Worsening Drought

The Panama Canal, a vital route for global trade, is experiencing a significant decrease in the number of ships passing through due to a severe drought, leading to increased costs and delays. The lack of water has forced officials to limit the number of vessels allowed, causing headaches for shipping companies and raising concerns about water usage in Panama. The drought is attributed to the El Niño climate phenomenon, exacerbated by potential climate change effects. The reduction in canal passages could result in revenue loss for Panama, higher shipping costs, and increased greenhouse gas emissions from longer routes. The canal's board has proposed building a new reservoir to increase water supply and traffic, but the project faces challenges and delays. Without a solution, alternative routes and land-based transportation may become more attractive options.