The Panama Canal Authority (ACP) has announced further restrictions on ship crossings, starting February 1, 2024, in response to an intensifying drought that has caused water levels in the canal to reach record lows.
The drought, which is being blamed on the El Niño weather pattern, has had a significant impact on global trade, with ships forced to wait for days to cross the canal, raising costs and slowing deliveries.
In July, the ACP began restricting the number of daily transits to a maximum of 32. On Tuesday, the ACP announced that it would be further reducing the number of reservation slots available, from the current 25 to 18 starting on February 1, 2024.
The ACP said that the restrictions were necessary to ensure that the canal has enough water to operate and to provide drinking water for almost half of the country’s population.
The Panama Canal is one of the largest waterways in the world and is a vital artery of global trade. It connects the Atlantic Ocean with the Pacific Ocean and allows ships to avoid having to travel around South America.
The restrictions on ship crossings are expected to have a significant impact on global trade, as companies will have to pay higher shipping costs and deal with longer delivery times.
Here is a summary of the key points:
- The Panama Canal Authority (ACP) is further restricting ship crossings due to an intensifying drought.
- The drought is being blamed on the El Niño weather pattern and has had a significant impact on global trade.
- The ACP began restricting the number of daily transits in July and will further reduce the number of reservation slots available starting on February 1, 2024.
- The restrictions are necessary to ensure that the canal has enough water to operate and to provide drinking water for almost half of the country’s population.
- The restrictions are expected to have a significant impact on global trade, as companies will have to pay higher shipping costs and deal with longer delivery times.
Source: earth.org