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Panama drought seriously impacting world trade
Drought-hit Panama Canal lowers maximum depth limit
Dr.G.R.Balakrishnan Sep 14 2023 Shipping News

Panama drought seriously impacting world trade

Panama’s drought is causing nightmares to world trade and putting a logistics squeeze on the critical international shipping pathway.


According to Panama Canal Authority, water levels have not recovered enough to resume normal passage, and the daily transit limits and vessel draught restrictions imposed earlier this year will need to remain in place until this time next year unless extensive rainfall is received in the canal catchment before the dry season begins in late November.


 Since July 30, the Panama Canal Authority has decreased the maximum number of vessels allowed to transit the lock system daily from 40 to 32.


The situation is manageable at the moment, but the crisis is serious. Any increase in maritime bottlenecks could spell trouble for the global supply chain networks with increasing logistics costs and drastically changing international trade flows, as per a report.