Since the Panama Canal was widened, greater use has been made of this sea route to access Gulf and East Coast U.S. ports.  The Panama Canal carries six percent of world maritime trade with passage of 15,000 vessels carrying 520 million tons of cargo annually.

Rainfall during the first half of 2023 was half the normal level, reducing water flow from Lake Alajuela and Lake Gatun, necessary to compensate for the 85-foot difference in sea level between the Pacific and the Atlantic Oceans through 12 locks.  It is estimated that every transit requires 52 million gallons of water.

Accordingly, authorities have reduced the draft of vessels transiting the Canal from 50 feet to 43 feet resulting in lower vessel utilization. 

The current El Nino event will prolong drought into early 2024.  It is evident that freight to Gulf and East Coast ports will be diverted to the West Coast, placing a burden on installations. Fortunately conclusion of the labor agreement should ensure operation of ports with increased tonnage.