Drought Conditions in Panama Lead to Significant Disruptions in Canal Traffic, Affecting Global Ag Exports

The drought in Panama has led to disruptions in Panama Canal traffic, affecting agricultural exports significantly. The canal, which relies on locks filled by precipitation in Gatun Lake, has faced restrictions in draft width and reduced daily transits from the usual 36-40 to 24. This has particularly impacted agricultural exporters, who find it difficult to schedule their shipments through the canal months in advance. The dry season has forced shippers to seek alternative routes, including the more expensive route around the Cape of Good Hope. The situation underscores the challenges posed by environmental conditions on global trade logistics.