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

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.

Panama Canal Administrator Ricaurte Vásquez now estimates that dipping water levels could cost them between $500 million and $700 million in 2024, compared to previous estimates of $200 million.