Economics
Panama Canal Drought Puts Bullseye on U.S. Gulf Crop Exports
- Restrictions in place on vessel draft transiting canal
- Impact will be felt on larger cargoes sent to Asia via Pacific
Photographer: Luke Sharrett/Bloomberg
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A drought has hit the Panama Canal, forcing some limits on the size of vessels that can pass through. This could have a sizable impact on U.S. agricultural shipments to Asia.
Almost 8 percent of grain vessels leaving U.S. Gulf export elevators could be impacted, according to an analysis of U.S. Department of Agriculture data back to January 2018.