A growing number of ships bearing cargo ranging from car parts to Christmas lights are avoiding a major waterway in Panama that substantially shortens voyages between the United States and Asia.
It is one of the latest examples of how climate change is causing disorder across shipping routes and supply chains, and comes at a time when the war between Israel and Hamas is also beginning to snarl global trade.
The rise in freight rates as a result of these disruptions is likely to be passed on to consumers, including those in trade-dependent Singapore, well into 2024, said analysts.
The 82km Panama Canal cuts across a narrow strip of land in Panama that links North and South America. It functions as a maritime shortcut between the Atlantic and Pacific oceans, and facilitates around 6 per cent of global trade.
The canal is also 26m above sea level, and relies on a system of locks, which are like compartments for ships that require water from surrounding reservoirs to lift, or float, each ship from sea to canal level, allowing them to cross.
But elevated temperatures in the Atlantic and Pacific oceans as well as a delayed onset of the rainy season since mid-2023 have led to severe drought in Panama, with October rainfalls being the lowest on record for the month since 1950, according to the Panama Canal Authority.
That has caused the level of freshwater at the main reservoir that supports the canal's operations to recede substantially. At 41 per cent below expected levels, 2023 could be the second-driest year on record, the canal authority said.
The water shortage has led to the number of daily sailings being lowered to 24 currently, from a maximum capacity of between 38 and 40 ships a day.
CONTAINERS UNDER PRESSURE
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VERDY'S APPROACH AN EYE-OPENER
Former Lions turned coaches Alam Shah and Isa inspired by stint with Japanese club
Lions' morale-boosting win comes at a price
The Lions got a much-needed morale booster ahead of the Asean Football Federation (AFF) Championship as they beat Tokyo Verdy 2-1 on Oct 11 in the second of three friendlies against J1 League opponents in their Japan training tour.
Conditions to blame for 'ugly' draw, says Messi
Argentina were held to a 1-1 draw by Venezuela on Lionel Messi's return, as Brazil got their 2026 World Cup qualifying campaign back on track with a last-gasp 2-1 victory over Chile on Oct 10.
Belgium punish Italy at set pieces in 2-2 draw
Italy coach Luciano Spalletti blamed bad luck, as Belgium bounced back from two goals down to draw 2-2 with his 10-man side in Rome on Oct 10 to boost their hopes of reaching the Nations League quarter-finals.
CARSLEY'S MIDFIELD OVERLOAD BACKFIRES
England temp boss dismayed by mistakes as Three Lions lose to Greece for first time
Player strike in England unlikely: Sports law expert
The chorus of frustrated players and managers speaking out against football's gruelling fixture schedule continues to grow, with Liverpool defender Ibrahima Konate the latest to say he would support players' right to strike.
SOCCEROOS HAVE NO FEAR
They head to Japan with confidence despite never having beaten the Samurai Blue there
Toyota back in F1 with Haas tie-up
The United States-owned Haas Formula One team and Toyota announced a multi-year technical partnership on Oct 11, in a move bringing Japan's biggest carmaker back to grand prix racing for the first time since 2009.
SABALENKA TO STICK TO HER BRAVE PLAN
World No. 2 will be aggressive in Wuhan semi against Gauff; Fritz takes on Djokovic
Nadal's beauty lay in his purity as a competitor
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