At a glance
The Panama Canal authority announced reduced daily transits due to worsening drought from El Niño conditions. The cuts threaten global supply chains and shipping schedules.
The Panama Canal authority announced reduced daily transits because worsening drought from El Niño has lowered water levels below operational thresholds. The cuts are limiting how many ships can pass through each day and affecting their cargo capacity. Global supply chains depend on the Canal as a chokepoint for Asia-to-North America and Europe shipping.
Water scarcity cutting into the Canal's throughput isn't a short-term problem. El Niño conditions are persistent, and longer-term climate patterns suggest drier conditions ahead. Companies are already rerouting ships around Cape Horn or through the Suez Canal, adding weeks to transit times and costs. The reduction isn't crisis-level yet, but it's the first visible sign that a climate variable is reshaping global logistics.
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