Panama Canal considering more cuts in transits due to El Nino
The Panama Canal may further reduce daily ship transits due to drought from El Nino, according to its new administrator Ilya Espino de Marotta. The canal has already cut the maximum daily transits from 36 to 32 by mid-September, and further reductions to around 29 are possible in February or March. The restrictions come as canal usage has risen because shippers seek an alternative to the Strait of Hormuz, which Iran has blocked.
Why it matters: This development affects global trade and energy shipping routes, a key theme in the briefing on geopolitical disruptions and their economic consequences.