Climate change and the hidden water cost of the Panama Canal

1 February 2024

You’ve almost certainly read about the backup of ships waiting to transit the Panama Canal, which carries 6 percent of all commercial ships worldwide. While the worry among faraway readers may be concerns about supply chain disruptions that could lead to holiday shopping shortages, the problem in Panama is more immediate. The proximate cause of the backup is severe drought. That makes sense on its face because the canal is full of water and that water has to come from somewhere.

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