Panama Canal faces water crisis amid drought and growing demand

The Panama Canal faces a water crisis amid drought and growing demand.

A recent study found the El Nino climate phenomenon, not climate change, drove lower rainfall last year that reduced water levels and contributed to shipping restrictions that disrupted global trade.

Panama experienced its third-driest year on record in 2023, leading the canal authority to restrict the size and number of vessels crossing the waterway that connects the Atlantic and Pacific Oceans and serves as a vital route for maritime trade.

At times, more than 100 ships lined up and waited up to 21 days to use the canal, which is responsible for about 5 per cent of global shipping.