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CEO North America > CEO Life > Environment > Panama Canal drought impacts foreign trade

Panama Canal drought impacts foreign trade

in Environment
Panama Canal drought impacts foreign trade
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An ongoing drought in the Panama Canal is reportedly significantly impacting international trade.

With rainfall in the region 30% less than previous years, the water level in the Panama Canal has dropped to levels that have affected the quantity of ships able to pass through on a daily basis.

While canal authorities first slashed the number of ships allowed to move through the waterway from 38 ships to 32 ships per day in July, this week authorities announced new limitations that will likely set the amount of ships allowed to pass through to below 30 per day.

According to experts, more cuts could come if the canal’s water level continues to remain low, an issue that may persist as the El Niño meteorological phenomenon is set to continue through mid-2024.

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