By Zoila Palma: The Panama Canal is facing renewed pressure from an unusually strong El Niño, with below-average rainfall reducing water supplies and creating delays and higher costs for shipping companies.
The canal, which handles about 5% of global shipping and is a major trade route for goods entering and leaving the United States, is already experiencing growing congestion.
The canal depends on freshwater from Lake Gatun to operate its locks, but Panama has experienced increasingly dry conditions during the current wet season.
Rainfall across the canal watershed since May is reportedly 34% below the historical average, prompting authorities to impose restrictions on how deeply ships can sit in the water.
A 48-foot draft limit is scheduled to take effect in September, meaning vessels may have to carry less cargo.
Shipping companies are already responding to the restrictions, CNN reports.
Mediterranean Shipping Company announced an increase in its Panama Canal surcharge, while authorities are also reducing the number of vessels allowed to transit each day. Starting September 4, 34 ships will be permitted to pass daily, falling to 32 by September 15, a move experts warn could worsen existing delays and increase transportation costs.
The impact could extend well beyond ships using the canal. Companies facing delays may reroute cargo through U.S. West Coast ports and transport goods across the country by truck or rail, increasing pressure on already-congested land transportation networks.
Experts say higher shipping and transportation costs are ultimately likely to be passed on to consumers through more expensive goods, including food, medicine, electronics and other imports.
The post International News: El Niño threatens Panama Canal, raising fears of higher prices worldwide appeared first on Belize News and Opinion on www.breakingbelizenews.com.
By Zoila Palma: The Panama Canal is facing renewed pressure from an unusually strong El Niño, with below-average rainfall reducing water supplies and creating delays and higher costs for shipping companies. The canal, which handles about 5% of global shipping and is a major trade route for goods entering and leaving the United States, is already
The post International News: El Niño threatens Panama Canal, raising fears of higher prices worldwide appeared first on Belize News and Opinion on www.breakingbelizenews.com.
