What causes low water levels in the Panama Canal?

El Niño dries out Central America, slashing rainfall into Gatun Lake — the canal's lifeline. Less water means fewer locks cycles per ship.

Will Panama Canal disruptions raise shipping costs?

Absolutely — expect spot rates to double on affected routes, like Asia-US East Coast, as auctions return.

60-65% chance of disruptions by year-end; transits could drop 20-35%, echoing 2023's mess.

🚚 Logistics & Freight

Panama Canal's water woes are back, courtesy of El Niño. Shippers, brace for delays that could reroute global trade.

Supply Chain Beat Apr 11, 2026 4 min read

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Informed capital. Intelligent coverage.

#El Niño #El Niño forecast #Panama Canal #freight rates #shipping disruptions #supply chain risks

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Originally reported by JOC Journal of Commerce