Things Aren't Great at the Panama Canal Right Now

Ship traffic has been reduced due to drought
By Kate Seamons,  Newser Staff
Posted Aug 30, 2023 4:17 PM CDT
Drought Is Causing Problems in the Panama Canal
Cargo ships wait in the Pacific Ocean to pass though the Panama Canal, seen from Panama City, Friday, Aug. 25, 2023. Due to a lack of rainfall, authorities in early August limited the number of ships passing through.   (AP Photo/Agustin Herrera)

If drought in the Panama Canal region sounds like something that has no impact on you, think again. CBS News reports the lakes that feed the canal system are close to their minimum levels after an atypically dry season, and that's throwing a wrench into how much traffic the canal can handle. Some 40% of US container traffic passes through it, with roughly two of every three ships in it either bound for the US or coming from it. A lack of rainfall spurred officials to reduce the number of ships passing through daily to 32 in late July; the AP reports the typical max is between 36 and 38. Weight limits have also been shaved down, and in late August, those restrictions were extended for the next 10 months.

Panama is halfway through its rainy season, and what is typically one of the wettest countries on Earth is seeing some of the lowest rainfall numbers it has recorded, per CNN. The drought itself is not entirely unprecedented, with the canal—which relies on freshwater—having weathered a drought over 2019 and 2020. But as USA Today puts it, "the current drought recurrence and severity has no historical precedence," according to officials.

CBS News reports it takes at least 55 million gallons of water to move a single ship through the canal's lock system, with the water typically ending up in the ocean. The Panama Canal Authority is looking into options ranging from retaining some of that water to building more reservoirs or diverting nearby rivers. Shipping company Maersk is the canal's top user, and its managing director warns that should the drought persist, we could feel it come Christmastime, with potential delays and increased shipping costs that could get passed on to the consumer. (More Panama Canal stories.)

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