The Panama Canal drying up not only affects consumers globally by increasing prices but also hits Panama's economy hard as the canal is a cornerstone, generating $4.32 billion in revenue in 2022. Disruptions in the canal lead to uncertainty and risks for the country’s economy and related industries. To address the drying up issue, a proposed solution is to dam up the Indio River to provide more water to the Panama Canal by drilling tunnels through a nearby mountain. However, this solution may face challenges as it could be unpopular among communities due to environmental and social impacts.
A drought has dramatically reduced the Panama Canal’s capacity, leading to higher costs and big delays for US-bound goods. Reporter Mie Dahl and economics professor Sharat Ganapati deliver the shipping news.
This episode was produced by Jesse Alejandro Cottrell and Haleema Shah, edited by Matt Collette, fact-checked by Laura Bullard, engineered by Patrick Boyd, and hosted by Noel King.
Transcript at vox.com/todayexplained
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