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Critical Water Levels in the Panama Canal & MedShare Match

Thought Leader: Peter Zeihan
November 14, 2023

Water levels in the Panama Canal are critically low, and the effects could be devastating. The canal represents one of the world’s most important trade routes and plays an essential role in the US trade system.

Ship traffic in the canal has already fallen by 25%, and throughput capacity has been cut in half. This drought will only worsen as an intense El Niño winter rolls through.

Although there aren’t any great short-term solutions, this should be the kick in the ass the US needs to reshore processing. Outside of mitigating future disruptions, everyone using the Panama Canal will just have to ride this wave (or use longer and more expensive routes).

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