Droughts in the Panama Canal

Written by: Yuna Seung

For those who have a guilty pleasure of online shopping - do you ever wonder where all of your products get shipped through and the potentially detrimental impacts it has on the environment?

For the past few years, climate change has shown aggravation despite our constant efforts to rekindle the protective fortifications our planet once had even up till a few decades ago. The ongoing climate crisis is our “wake-up call” for a radical rethink, a change of our carbon-heavy lives, and our collective inclination to make sacrifices for future generations. Not only does the lack of water induce more and more droughts, but it also could potentially harm both terrestrial flora and fauna, ultimately affecting ecosystem health and biodiversity. As more frequent wildfires and extended dry periods batter our land, our ways of managing and saving water are becoming less reliable. But what seems to be an efficient task, shipping goods, is now impeding due to the detrimental effects of this infamous problem.

Constructed in 1914, the Panama Canal, a revolutionary change to the subject of international trade, is a significant shortcut for ships that previously made long journeys around the southern tip of South America. However, continuous droughts induced by the burning of fossil fuels are reducing the ship traffic that carries goods in and out of the United States making the operation of this canal a greater challenge, especially for the Panamanian economy. The continuous droughts could potentially reduce ship traffic by lowering the water levels, enforcing draft restrictions, and increasing the risk of vessels running aground, leading to not only decreased cargo capacity but also navigational challenges. What’s worse is that there could be multiple droughts that affect other global trade routes, like the English Channel and Suez Canal, at the same time, gravely affecting the transport of goods, such as coffee beans, petroleum products, and the products we purchase online. 

Drought is a recurrent natural phenomenon and the risks of it are drastically higher in a world where the average global temperature is higher due to the burning of fossil fuels, along with the return of El Niño, the warming of the ocean surface. Exceptionally arid weather conditions in the summer are a sign that severe drought could occur again in the fall by the Panama Canal. Due to the laborious circumstances, this could mean higher prices and fewer products on the shelves of some of our favorite stores. 

Additionally, ships have to reduce cargo volumes owing to this matter, thus fewer ships are going through the canal each day, which is restricted to approximately 32-34 ships, in contrast to 36-38 ships passing the canal on a daily basis up till a few years ago. All of these factors - the increase in ship traffic, the increase in prices, and the reduction of cargo volumes could lead to supply chain disruptions, inflationary pressures, and economic challenges on a global scale. 

It’s too soon to confirm how the extreme weather conditions will deteriorate canal operations. While business industries that transport goods through the canal are taking a “wait and see” approach, the Panama Canal Authority is analyzing different models that could predict future climate trends. It’s definitely time for policymakers to invest in updating our water models, meaning more accurate management and predictions with water that could lead to greater access for the people who depend on the changing water supply, rather than maintaining the status quo and hoping for the best; large-scale investment in the agencies that develop these models is supreme in preparing for the future. It’s the only way we can be prepared for when the trigger is pulled. 

To the premise, next time you spend all of your money online (on unnecessary goods), don’t voice a complaint about the high shipping price. Instead, reflect on how you and your community could help to eradicate this major concern our planet still faces today to help future generations.

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