A severe drought is threatening to disrupt shipping on the Panama Canal, the crucial waterway responsible for transporting 40 percent of the world's cargo ship traffic.
An estimated two-thirds of the canal's traffic is either headed for or leaving the United States. The products that typically ship through the canal include petroleum products, grains, canned and refrigerated foods, machinery equipment, coal and many others.
The Panama Canal is the linchpin connecting the Atlantic and Pacific Oceans. Passing through the canal helps save time and billions of dollars by offering ships an efficient shortcut around the tip of South America. However, Boris Moreno, vice president of operations for the canal, has warned that the Panama Canal system depends on lakes whose levels are now "close to the minimum."
The region home to the canal has experienced an unprecedented dry season, leading to a substantial decline in water levels within the canal, which needs fresh water to operate. This has resulted in disruptions to the Panama Canal's daily operations, with the number of vessels passing through daily reduced from 36 to 32. The disruption has also caused delays and traffic congestion at sea.