Panama Canal cuts ship traffic amid water level drop

The Panama Canal is experiencing a decline in ship traffic due to reduced water levels caused by the El Niño phenomenon. As a result, it has decided to cut the daily number of transits from 36 to 32 ships by mid-September, putting additional pressure on one of the world's most vital trade routes and threatening increased shipping costs and delays. These measures come amid projections that this year will see the most severe El Niño event in four decades, leading to a drought that affects Central American countries and causes a water shortage critical for operating the canal. The canal serves approximately 5% of global maritime trade, especially between the United States and China.

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