Panama Canal chief weighs further transit cuts amid El Nino drought
Ilya Espino de Marotta, the newly appointed administrator of the Panama Canal, revealed on Monday that the number of daily transit slots might decrease from 32 to 29. This potential reduction is attributed to falling water levels linked to the El Nino weather phenomenon. Currently, the canal, which facilitates 5% of global maritime trade, has already lowered its maximum daily transits from 36 to 32 since last month. In response to El Nino, Panama has declared a nationwide emergency, with predictions indicating it could be the most intense event in four decades. These limitations arise despite heightened demand, as shippers are looking for alternatives to the blocked Strait of Hormuz. Espino de Marotta's statements were reported by Agence France-Presse.
Key facts
- New Panama Canal chief Ilya Espino de Marotta considers cutting daily transit slots from 32 to 29.
- Transit slots already reduced to 32 per day from 36 last month.
- Reduction due to dropping water levels caused by El Nino drought.
- Panama has declared a nationwide emergency over El Nino.
- This year's El Nino expected to be strongest in four decades.
- Canal handles 5% of global maritime trade.
- Restrictions come despite increased demand due to Strait of Hormuz blockade by Iran.
- Canal operates using rainwater from two reservoirs.
Entities
Institutions
- Panama Canal
- Agence France-Presse
Locations
- Panama
- Pacific Ocean
- Strait of Hormuz
- Iran
- United States
- Israel