Panama Canal Struggles to Recover From 2023 Drought

The Panama Canal is projected to require the remainder of the year for a full recovery from the 2023 drought, which resulted in depleted water levels, congestion in vessel traffic, and substantial financial impacts on shippers. Forecasts indicate that the arrival of La Niña is anticipated to bring significant rainfall in the upcoming weeks, offering some relief following the unprecedented dry spell that affected the vital transit passage in 2023. According to Argelis Moreno Lopez, a senior forecast and market analysis specialist at the Panama Canal Authority, the severe moisture deficit necessitates several months of precipitation to restore normal conditions.