The Panama Canal will take months to recover from precipitation deficit

The Panama Canal will take the rest of 2024 to recover from the drought that has plagued it since last year, Bloomberg reports. The drought has depleted the canal’s water reserves, crippling vessel movements and causing USD mns in losses for shippers. La Niña is forecasted to bring abundant rainfall within weeks, bringing relief after unprecedented dry conditions in 2023, according to Argelis Moreno Lopez, senior forecast and market analysis specialist in the Panama Canal Authority’s strategic planning division. It will, however, take months of precipitation to fully reverse the moisture deficit, Moreno added.