A prolonged drought since the previous year has led authorities in Panama to reduce ship crossings through the Panama Canal by 36%, impacting one of the world’s crucial trade routes.
The new cuts announced on 17th January by authorities in Panama are set to deal an even greater economic blow than previously expected.
According to news, Panamanian officials now anticipate that the decline in water levels could result in losses ranging from $500 million to $700 million in 2024, a substantial increase from the earlier estimate of $200 million.
One of the most extreme droughts in the nation’s history has disturbed the 50-mile maritime route, leading to congestion and prompting doubts about the Panama Canal’s dependability for worldwide shipping. This situation has raised apprehensions about its impact on global trade.
Furthermore, Panama Canal Administrator Ricaurte Vásquez, on Wednesday, disclosed plans to limit daily ship crossings to 24, following a gradual reduction from the usual 38 per day in normal conditions over the past year. Vásquez emphasized the need for the country to address the water problem urgently and find a viable solution.
