Panama Canal Faces Shipping Disruptions as El Niño Causes Record Low Water Levels

The Panama Canal is experiencing significant disruptions in shipping traffic due to record low water levels caused by a severe drought linked to the El Niño climate pattern. According to a study by the World Weather Attribution team, the canal's water levels are the lowest ever recorded for the start of the dry season, despite Panama being one of the wettest places on Earth.

The study found that the El Niño phenomenon, a natural warming of the central Pacific that changes weather patterns globally, was the primary driver behind the lower rainfall in Panama in 2023. El Niño reduced rainfall in the country by about 8% last year, which was the third driest year on record. As a result, water levels in the Gatún Lake reservoir, a crucial part of the canal's water supply, have dropped to critical levels.

The Panama Canal Authority has been forced to reduce the number of daily crossings through the canal and restrict the size of ships passing through. This has led to long queues of over 100 ships at times, waiting up to 21 days to use the canal. The disruptions have had ripple effects across global supply chains, delaying shipments of various goods, including food and fuel.

Why this matters: The Panama Canal is a vital artery for global trade, handling about 5% of global shipping. Prolonged disruptions to canal operations could have far-reaching consequences for transportation, energy, and food supplies worldwide.

Scientists warn that future El Niño years could bring even wider disruptions, not just to global shipping, but also to water supplies for local residents. "With the canal's water use expected to more than double by 2050, authorities may need to reintroduce shipping restrictions, especially during El Niño years, to safeguard drinking water supplies," the study cautioned. The canal provides drinking water for more than half of Panama's population, and as the country's population grows and seaborne trade expands, water demand is anticipated to become a much larger share of available supply in the coming decades.

Key Takeaways

• Panama Canal facing record low water levels due to severe drought linked to El Niño
• El Niño reduced rainfall in Panama by 8% in 2023, the third driest year on record
• Canal authority forced to reduce daily crossings and restrict ship sizes, causing long delays
• Disruptions have ripple effects on global supply chains, delaying shipments worldwide
• Future El Niño events may require more shipping restrictions to protect drinking water supply