Mint Explainer: The unprecedented crisis in the Panama Canal hurting world trade
SummaryA severe drought in the Panama Canal is exacerbating the already strained situation the global shipping industry and supply chains are facing because of the Red Sea crisis
The Houthi attacks in the Red Sea and disruptions in the Suez Canal aren’t the only factors hurting global shipping. Amplifying challenges for the shipping industry and global supply chains is a severe drought that’s affecting the Panama Canal, a vital trade route in Central America linking the Atlantic and Pacific oceans. This led to a 36% drop in transits last year, resulting in costly delays and impacting global trade.