Panama Canal traffic cut by more than a third because of drought

PANAMA CITY (AP) — A severe drought that began last year has forced authorities to slash ship crossings by 36% in the Panama Canal, one of the world’s most important trade routes. The new cuts announced Wednesday by authorities in Panama are set to deal an even greater economic blow than previously expected. Canal administrators now estimate that dipping water levels could cost them between $500 million and $700 million in 2024, compared to previous estimates of $200 million. One of the most severe droughts to ever hit Panama has stirred chaos in the 50-mile maritime route, causing a traffic jam of boats and casting doubts on the canal’s reliability for international shipping and raising concerns.