Drought at the Panama Canal
The Panama Canal, a 51-mile waterway connecting the Pacific and Atlantic Oceans, transports $270 billion of cargoannually. Located at each end of the canal, locks lift and lower ships, moving them into and out of Gatun Lake, an artificial freshwater lake. A severe drought during the May to December 2023 rainy season has resulted in the lake being six feet below its pre-drought levels. As a result, the Panama Canal Authority has restricted the number and size of ships that are able to pass through the canal since June 2023, causing ships to have to travel around the tip of South America to reach their destinations, adding delays at other ports and escalating the demand for trucking and rail services—all of which have increased greenhouse gas emissions and the cost of imported goods. In addition, water in the locks that is usually flushed into the oceans is being recycled to maintain Gatun Lake’s water level, and because this reused water can become saltier, it poses a threat to Panama’s main source of drinking water.
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