Panama Canal Jam Sends Ships Sailing Continents Out of Way (2)
A drought-triggered bottleneck is scrambling global trade — and could boost inflation.
A tugboat navigates a shipping vessel into the Pedro Miguel Locks near Paraiso, Panama.
Photographer: Walter Hurtado/BloombergThe Panama Canal, the century-old engineering marvel that revolutionized global trade, is being squeezed shut by drought and forcing shippers worldwide to face a painful choice.
They can wait in line for days or weeks, as low water levels limit the number of ships passing through the 50-mile waterway, carrying cars, consumer goods, fruit and fuel. They can pay millions of dollars to jump ahead in the queue, if a ship with a booked reservation drops out. Or they can sail an entire continent out of the way, sending their ships around the southern tips of Africa and South America, or through the busy Suez Canal.