Panama Canal Turns From Trade Catalyst to Chokepoint

For more than a century, the Panama Canal has been a catalyst for consumer goods and raw materials flowing between the Americas, Asia and beyond. Thanks to climate change, it’s now a chokepoint.

A drought is reducing water levels in a nearby lake used to manage the depths for cargo ships passing through its locks. That’s led to tonnage restrictions and fewer vessels transiting the shortcut each day, causing delays. Those unwilling to wait have two options: pay hefty fees to jump the queue, or sail a much greater distance around South America, Africa or through the Suez Canal.