affected by global climate change and other factors, Panama continues to be dry and rainless, facing the worst drought in 70 years. The Panama Canal Authority has now raised the limit on the depth of draft of ships five times in a row, which means that some container ships may need to cut their cargo capacity by 40% to pass, and international logistics costs will also rise.

The Panama Institute of Meteorology and Hydrology stated that since the beginning of this year, most countries in Latin America, including Panama, have experienced long periods of low rain and high temperature, and many areas have experienced severe droughts. It is expected that by the end of this year, the rainfall in Panama will remain at a low level, and the drought will continue until 2024.

affected by water shortage, the Panama Canal Authority has lowered the maximum draft depth of large ships five times in a row, from 15.24 meters to 13.41 meters at present, and plans to lower it again in July. This means that the same weight of cargo needs to be loaded with more cargo ships, and logistics costs are greatly increased.

, it is reported that many shipping companies that rely on the Panama Canal route have increased the transportation price of a single container by US $300 to US $500, or about RMB 2150 to 3590. Some economists pointed out that the increase in logistics costs will boost the price of basic raw materials, and some countries have begun to evaluate and find alternative routes.

Head office reporter Rodriguez: The Panama Canal is responsible for about 3% of the world's trade volume. If the drought continues, the mining and raw material markets will be affected.

Panama American University economist Algot: we take copper as an example, such as from Chile or Panama Cologne Province Donoso region, and through the canal export, its price will become more expensive.

Source: Shipping Online