Panama Canal faces water shortage amid drought and escalating demand

Posted on May 20, 2024   |  

The Panama Canal grapples with a water crisis due to drought conditions and heightened demand.

Reduced rainfall, attributed to the El Nino climate phenomenon, rather than climate change, led to lower water levels last year.

Panama experienced its third-driest year on record in 2023, prompting the canal authority to enforce restrictions on vessel size and numbers.

These restrictions disrupted global trade, as the canal serves as a crucial link connecting the Atlantic and Pacific Oceans.

At times, over 100 ships waited in queue for up to 21 days to traverse the canal, which accounts for 5% of global shipping.