The Panama Canal, an engineering marvel that enables ships to traverse between two oceans, is seeking ways to adapt to climate change after a record drought has led to a decrease in traffic.
The Panama Canal relies on rainwater to move ships through a series of locks that function as water elevators, raising vessels up and across from the Atlantic Ocean to the Pacific Ocean. However, low rainfall has created water shortages, forcing operators to limit the number of ships passing through, potentially decreasing revenue by $200 million in 2024 compared to this year, according to Ricaurte Vasquez, the canal’s manager, on August 3rd.
The Panama Canal uses fresh water to transport ships instead of saltwater like other locations. (Photo: AFP).
The warming phenomenon in the Pacific, known as El Niño, is causing drought in some countries and flooding in others, exacerbating the situation, according to meteorologists. “The major disadvantage of the Panama Canal in its role as a waterway is that it operates with fresh water, while other places use seawater. We need to find alternative solutions to maintain a proper route for international trade. If we do not adapt, the canal will cease to function,” Vasquez shared.
The 80-kilometer Panama Canal handles 6% of global maritime trade, with projected revenue for 2023 expected to reach $4.9 billion. The canal was inaugurated in 1914 after a construction project that cut through jungles and mountains, with workers facing tropical diseases, harsh sun, and rainy weather. Since then, over one million ships have passed through the canal, shortening the journey around Cape Horn.
Meteorologist Alcely Lau mentioned that this year has seen a significant lack of rainfall, increasingly severe due to El Niño. The drought has forced canal managers to restrict the waterway to ships with a draft (the vertical distance from the bottom of the ship to the waterline) of 13.11 meters. In 2022, an average of 40 vessels passed through the canal daily. This number has now decreased to 32 ships. Each vessel uses 200 million liters of fresh water to navigate through the locks before being lowered back into the sea.
According to Vasquez, significant restrictions will be in place until September of next year. Due to draft limitations, some cargo ships are forced to offload containers. Lighter ships can pass through the canal, while goods are transported by rail across Panama before being loaded onto ships for further transit. If the drought and restrictions persist, Vasquez worries that shipping companies may choose alternative routes, including the Magellan Strait, a natural strait at the southern tip of South America between the continent and the Tierra del Fuego archipelago.
The lack of rainfall is also increasing the salinity of the rivers that contribute water to the canal and three cities, including the capital, Panama City. “Every time we open the gates to the sea, saltwater mixes with fresh water. We must maintain salinity at a certain level because the water treatment plants are not capable of desalination,” Vasquez noted.
The dwindling supply of fresh water cannot be replenished with seawater like in the Suez Canal, which connects the Mediterranean Sea to the Red Sea, due to the need for large-scale dredging. Suez is flatter and has more sand, while Panama sits on rocky terrain and has a mountain range that, although not very high, still presents challenges, Vasquez explained.
