Shipping trying to pass through the Panama Canal is facing long delays and added costs, as authorities tackle what they call ‘unprecedented’ drought conditions caused by climate change. In late July, the Panama Canal Authority limited the number of vessels passing through the canal to 32, down from 36, and placed restrictions on the total tonnage that could be held on each ship.
The authority attributed this to an ‘extended dry season’ that caused high levels of water evaporation, calling the environmental conditions ‘historically unprecedented’. Vessels are now facing lengthy wait times before passing through the crucial canal, which is estimated to be a part of 180 maritime routes.
Other critical trade routes are being threatened by climate-related droughts as global temperature records continue to tumble. The River Rhine in Europe is also experiencing severe droughts, with exporters in Germany and elsewhere facing additional costs. Last month, Hapag-Lloyd and Maersk said they would pass on surcharges to customers. The Rhine was closed to barge traffic last year, as reported by the IOE&IT Daily Update, following another seasonal drought caused by a lengthy European heatwave. The Danube, the second longest river in Europe, has also been experiencing droughts.
Source: export.org.uk