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Panama Canal reduces vessel transits due to El Niño drought
The Panama Canal Authority (ACP) is implementing further reductions in vessel transits due to a severe drought driven by the El Niño climate phenomenon. Following previous cuts from 36 transits per day in August and 34 earlier this month, daily transits have been reduced to 32.
In a budget proposal submitted to the Panamanian parliament, the ACP projects that the average number of daily transits will drop to 29.5 for the upcoming fiscal year beginning in October. In a worst-case scenario, daily transits could potentially fall as low as 27.
The drought has significantly impacted the water levels of Gatun Lake and Alajuela Lake, which provide the fresh water necessary for the canal's lock system. The ACP has also implemented measures such as reducing water extraction from ships and adjusting maximum authorized drafts for vessels.
These restrictions are forcing many ships, particularly those traveling between the US East Coast and Asia, to reroute around the Cape of Good Hope in South Africa. This alternative route increases travel distance by 40-50 percent, which reduces available global shipping capacity and may contribute to higher freight costs and global food prices. NOAA estimates a 75 percent probability that the current El Niño will be the strongest since 1950.
Entities
BW LPG · El Niño · NOAA · Panama Canal · Panama Canal Authority
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Daily transits could potentially drop as low as 27 in a worst-case scenario. www.vg.no
- [● 3 SOURCES] The average number of daily vessel transits is projected to be 29.5 for the upcoming fiscal year starting in October. www.in.gr · www.reader.gr · www.theguardian.com
- [● 4 SOURCES] The Panama Canal Authority (ACP) is reducing vessel transits due to drought caused by El Niño. www.in.gr · www.reader.gr · www.swedishclub.com · www.theguardian.com
- [● 5 SOURCES] Daily vessel transits have been reduced to 32 per day, down from 36 in August and 34 earlier this month. www.in.gr · www.reader.gr · www.vg.no · www.swedishclub.com · www.theguardian.com
- [○ 1 SOURCE] NOAA estimates a 75 percent probability that the current El Niño will be the strongest since 1950. www.vg.no
- [○ 1 SOURCE] Rerouting ships around South Africa increases travel distance by 40-50 percent and reduces available shipping capacity. www.vg.no