The Panama Canal is reducing the number of ships allowed to cross each day due to a severe drought caused by climate change, The Financial Times reports.
Earlier this year, the canal’s daily crossing limit was reduced from an average of 36 to 31 ships per day. Now, further limitations will be implemented, with the crossing capacity dropping to 18 per day by February 2024.
The canal accommodates 3% of world trade, but a reduction in freshwater levels is impacting its operations. This is especially concerning for trade between Asian countries, such as China, and the US East Coast, which relies heavily on the Panama Canal.