📊 The Panama Canal Drought

What's happening with this staple of world trade?

Welcome to Latinometrics. We bring you Latin American insights and trends through concise, thought-provoking data visualizations.

Trade 🚢

The Panama Canal is essential for the Americas’ trade landscape. According to UNCTAD, nearly a quarter of Ecuador's, Chile's, and Peru's trade volume goes through it. 12% of US trade, worth $5T, also passes through the canal.

But the canal is pivotal for the world, not just the Americas. Everything from computers to vehicles to mangoes crosses this route to facilitate a shorter route between mainly Asia, Europe, and the Americas.

A severe drought in Panama started early last year, and low water levels have limited the canal's capacity to move ships. The Panama Canal's authority reduced the number of ships crossing daily from roughly 37 to 31. Five or six fewer ships per day can cause huge disruptions in supply chains as time goes on.

The Panama Canal Sinks in Trade Volume