Suez ships skip Panama

The Panama Canal Authority said on Thursday it has not seen a notable traffic increase due to the situation in the Red Sea, where attacks by Yemen’s Houthi group are forcing vessels to divert or switch off their transponders.

The hostilities have put a chokehold on ship passages through the Suez Canal, which handles about 12% of worldwide trade, and according to analysts could end up forcing some vessel owners to try to pass the Panama Canal even amid transit restrictions due to severe drought.

The waterway’s administrator said it will continue monitoring the country’s water conditions.