PANAMA CITY (AP) – A severe drought that began last year has forced authorities to slash ship crossings by 36 per cent in the Panama Canal, one of the world’s most important trade routes.
Canal administrators now estimate that dipping water levels could cost them between USD500 million and USD700 million in 2024.
One of the most severe droughts to ever hit the Central American nation has stirred chaos in the 50-mile maritime route, causing a traffic jam of boats.
On Wednesday, Panama Canal Administrator Ricaurte Vásquez said they would cut daily ship crossings to 24, after already gradually slashing crossings last year from 38 a day in normal times.
It was a “significant reduction” for the country, Vásquez said.
Canal authorities attributed the drought to the El Niño weather phenomenon and climate change, and warned it was urgent for Panama to seek new water sources for both the canal’s operations and human consumption.
The same lakes that fill the canal also provide water for more than 50 per cent of the country of more than four million people.
“The water problem is a national problem, not just of the Canal,” Vásquez said.
