Disclaimer: The information provided on the Timber Exchange Market Data Hub is sourced from a variety of publicly available data sources and confidential sources that have not been independently verified. Timber Exchange is not responsible for any expenses, damages, losses, or costs incurred as a result of using or relying on the information provided on this site. By using the Timber Exchange Market Data Hub, you agree to use the information at your own risk and acknowledge that any decisions made based on the information provided are done so solely at your own risk.

Panama Canal traffic falls to 29% as climate change brings severe drought

Panama Canal traffic falls to 29% as climate change brings severe drought

Posted on October 17, 2024 |

Traffic in the Panama Canal dropped by 29% over the past year due to a severe drought linked to climate change, affecting cargo volume.

Cargo shipped through the canal decreased by 17% over the year, reaching a total of 423 million tonnes.

The region faced its worst drought in decades, partly caused by the ocean-warming El Niño, which lowered reservoir levels.

To manage the water shortage, the canal authority cut the daily ship crossings from 38 to 22.

Conditions have improved since the rainy season started in May.

Around 5% of global maritime traffic passes through the Panama Canal, which the United States built between 1904 and 1914.

Major users of the canal include China, Japan, South Korea, and the United States, and the authority expects business to recover by 2025.