Severe Drought in Panama Impacts Global Commerce as Climate Change Worsens

Drought has impacted the water supplies in the Panama Canal, an important transit route for the global shipping industry. Based on the latest reports, the Panama severe drought is affecting global commerce as climate change worsens, triggered by this year's El Nino weather phenomenon. The supply chain crisis in the international canal has become an issue as early as June 2023.

The Panama Canal, like other bodies of water, is experiencing a shortage of water levels amid a severe drought. In this case, the Panama government has limited the passage of ships, causing a bottleneck of vessels traveling through the said route. The extreme dry weather confirms that not only water reservoirs, but even large canals, are vulnerable.

Panama Severe Drought

The Panama severe drought has shortened from once in every five years down to once every three years since the last period of intense drought occurred between 2019 and 2020, according to Panama Canal administrator Ricaurte Vasquez.

Characterized by an unusual period of prolonged dry weather caused by a lack of precipitation, drought is known for being notorious when it comes to depleting water resources at unprecedented rates. This is in addition to the environmental repercussions of the natural disaster to crops, livestock, and the economy.

In response, Panama officials have reportedly limited not only the number of passing ships but also the weight of their cargo. This measure ensures the passage of maritime vessels amid shallow waters that receded from its original higher levels, mitigating, or preventing disruption in global maritime commerce.

Global Shipping Industry Affected

Due to the drought-driven restrictions along the Panama Canal, commercial ships are facing long queues and delays in passing in and out of the Central American nation. The canal, serving as a bridge for trade between the United States and China is crucial for cargo ships that carry goods.

A slow or failed delivery means the global shipping industry is at risk, even if the other trading route, Suez Canal in Egypt, remains open.

Worsening Climate Change

For decades, climate scientists have issued warnings regarding the worsening climate change, which they assert exacerbates extreme weather events such as droughts, as well as heatwaves and storms. Based on prevailing scientific research, greenhouse gas emissions and fossil fuel burning are the greatest contributors to the anthropogenic climate crisis.

As mentioned earlier, Panama authorities have noticed the shortening interval of drought in recent years. The observations add to the narrative of the severe nature of the current climate emergency is becoming a reality more than ever.

In a "Synthesis Report" on March 20, the United Nations Environment Programme reiterates that humans are responsible for all the global warming over the past 200 years, resulting in a temperature spike of 1.1 degrees Celsius more than the temperature during pre-industrial levels. Furthermore, the report reminds us that extreme weather phenomenon is parallel with the heating of the planet.