Panama Canal considering more cuts in transits due to El Nino
The restrictions come as canal use rises, with shippers seeking an alternative to the Strait of Hormuz amid the US-Israeli war.
The Panama Canal Authority is considering further restrictions on ship transits due to drought brought on by the strong El Nino weather pattern, the new administrator announced. Panama has already reduced daily ship crossings from 36 to 32, a figure that could drop to 29 or 24 if the drought persists. The canal, which handles 5% of global maritime trade, relies on rainwater from two reservoirs, the levels of which have dropped due to El Nino.
Each ship needs about 200 million liters of water for the journey, which is discharged into the sea. In 2023, El Nino reduced transits from 38 to 22. Experts warn that long-term restrictions could lead to higher shipping costs and longer delivery times. The United States and China are the main users of the canal, which handles around 40% of US container traffic.
The Iran war has increased traffic through the canal, as vessels seek an alternative to the blocked Strait of Hormuz.
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- Panama Canal considering more cuts in transits due to El Nino freemalaysiatoday.com
- New Panama Canal chief considers more cuts in transits due to El Nino scmp.com
- Panama Canal considering more cuts in transits due to El Nino japantimes.co.jp
- Panama Canal may cut ship traffic further as El Niño strengthens aljazeera.com
- Panama Canal considering more cuts in transits due to El Nino hindustantimes.com
- Panama Canal considering more cuts in transits due to El Nino al-monitor.com
