The El Niño Effect: A Shipping Industry's Worst Nightmare The Panama Canal is facing further cuts to maritime traffic due to a worsening drought caused by El Niño, highlighting the vulnerability of global supply chains to environmental uncertainty.
As one of the world's busiest shipping routes, the canal handles 5% of global trade and nearly half of US container traffic.
The canal's closure or significant reduction in capacity would have catastrophic consequences for shipping companies and consumers alike.