Drought paralyses 134 ships in Panama Canal, revenues may drop by €150-200m in next fiscal year


Banca March | Weather conditions in recent months have led to a drought that is hampering the supply of the artificial lake that connects the Pacific and Atlantic oceans. As early as 30 July, measures were taken to reduce traffic from 38 vessels in normal conditions to 32. The waiting time estimated by the canal itself is between 9 and 11 days. The restrictions on both the depth and daily transit of vessels pose a challenge to world trade, affecting shipping routes connecting ports in 170 different countries. Between 3% and 3.5% of world trade flows through the canal. There is still uncertainty as to whether the problem is temporary or long-term, raising the need to develop new routes. The administrator of the Panama Canal has communicated the expected drop in revenue for the next fiscal year, which is in the range of between $150 and $200 million.

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