New Panama Canal chief says El Nino could force further transit cuts
The number of ships sailing through the Panama Canal could be cut further due to drought caused by the El Nino weather pattern, the new administrator of the waterway told Agence France-Presse on Monday.
Panama has declared a nationwide emergency over El Nino, a phenomenon developing over the Pacific Ocean that is affecting worldwide weather patterns and pushing up global temperatures.
This year’s El Nino is expected to be the strongest since record-keeping began four decades ago.
Panama’s restrictions come even as use of the canal has risen: shippers are seeking an alternative to the Strait of Hormuz, which Iran has blocked in retaliation for the war launched by the United States and Israel.
The interoceanic Panama Canal – which handles 5 per cent of global maritime trade – has already reduced the maximum number of ships allowed through daily, from 36 last month to 32 by mid-September.
It operates using rainwater that collects in two reservoirs, whose levels have dropped due to the onset of El Nino.
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