Panama Canal imposes ship restrictions due to severe drought.

The Panama Canal is imposing depth restrictions on container ships due to drought, with the largest ships limited to a depth of 43.5 feet. The restrictions may cause shipping delays and capacity limits, with surcharges already increasing for vessels. Liquid Natural Gas carriers will not be affected. The Northern Europe to South American West Coast corridor is the most affected trade route. The drought is attributed to a lack of rainfall and El Niño, with water shortages projected to surpass record lows by July.