Panama Canal Pileup: Drought Worsens, Threatening Trade Route
The Panama Canal is experiencing a major pileup of vessels, with 154 ships waiting to cross due to ongoing drought conditions. The scarcity of rainfall has forced the canal to reduce the draft of ships passing through, causing congestion and longer wait times. The U.S., the largest user of the canal, is heavily impacted, with 40% of its container traffic passing through the canal annually. Water conservation measures and lower water level restrictions have been implemented, affecting vessel weight and requiring some ships to unload cargo. The situation is expected to worsen, leading to potential route diversions and increased costs for businesses and consumers.