Today, Explained The Panama Canal is drying up
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Feb 20, 2024 
Mie Dahl, a freelance reporter focusing on the Panama Canal, and Sharat Ganapati, an assistant professor of international economics, discuss the severe drought impacting the canal's shipping capacity. They unpack the cascading effects on global trade, emphasizing rising costs and delivery delays for US-bound goods. Climate change's role in this crisis is also examined, alongside potential solutions for water management. The conversation reveals how geopolitical tensions further complicate global shipping routes, highlighting the urgent need for infrastructure improvements.
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Panama Canal Drought Impact
- The Panama Canal drought is severely impacting traffic, cutting allowed ships by half.
- This is due to El Niño and the canal's reliance on freshwater reserves.
Panama Canal Mechanics
- The Panama Canal's mechanics require freshwater to raise ships 85 feet above sea level.
- This system uses vast amounts of water, which is then lost to the ocean.
Canal Cargo and Crisis Impact
- Various cargo, including containers and cruise ships, transit the Panama Canal.
- The current crisis disproportionately affects smaller vessels due to the canal's booking system.