Devendra Kumar
A severe drought that began last year has forced authorities to take drastic measures to conserve water in the Panama Canal, one of the world’s most important trade routes. In an effort to address the dwindling water levels, Panama Canal administrators have announced a 36 percent reduction in ship transits, a move that is expected to deal an even greater economic blow than previously anticipated. The new cuts are slated to cost the canal authorities between $500 million and €460 million in 2024, a significant increase from the initial estimate of $200 million.
The drought, which has been attributed to the El Niño weather phenomenon and climate change, has already caused chaos in the 50-mile maritime route. Water levels are so low that a traffic jam of boats has developed, casting doubts on the canal’s reliability for international shipping and raising concerns about its impact on global trade.
As a result of the drought, the Panama Canal administration has had to gradually reduce the number of daily ship transits. The current limit is 24 ships per day, a significant decrease from the normal 38 transits per day. In the first quarter of the fiscal year, the passageway saw a 20 percent reduction in cargo and 791 fewer ships than the same period the previous year. The official described the reduction as “significant” for the country.
However, canal authorities are working to implement more efficient water management practices and have been encouraged by a jump in rainfall in November. This has allowed them to ensure that water levels are high enough to accommodate 24 ships per day until the end of April, when the next rainy season is expected to begin.
Despite the efforts to conserve water, the officials have warned that it is urgent for Panama to seek new water sources for both the canal’s operations and human consumption. The same lakes that fill the canal also provide water for more than 50% of the country’s population of over four million people. The water crisis is not just a problem for the canal, but a national issue that requires a comprehensive approach.
As Mr. Vasquez, the Panama Canal administrator, put it, “It’s vital that the country sends a message that we’re going to take this on and find a solution to this water problem.”