[News Terms] Sea Routes Further Delayed by Climate Change? ... 'Panama Unha'

Concerns have arisen that the Panama Canal, a key global maritime trade route connecting the Pacific and Atlantic Oceans, may not function properly until early next year. If the number of ships passing through the canal decreases due to severe drought and congestion continues, it is expected that international shipping rates will rise and maritime logistics will inevitably face disruptions.

The Panama Canal is an approximately 80 km long waterway crossing the Isthmus of Panama, connecting the continents of South and North America and linking the Pacific and Atlantic Oceans. Completed on August 15, 1914, it became a shortcut that quickly connects the Pacific and Atlantic Oceans. Using the Panama Canal to traverse from the United States' Pacific coast to the Atlantic coast reduces the sailing distance by about 15,000 km compared to going around South America. It takes 41 days to travel from Shenzhen, China to Miami, USA via the Suez Canal, but only 35 days via the Panama Canal. The Panama Canal handles 5% of global trade volume, and 40% of all container traffic in the United States passes through it.

The Panama Canal is a lock canal that adjusts water levels through locks due to differences in waterway elevation. However, recently, due to a lack of rainfall caused by climate change, Lake Gatun, which supplies water to the canal, has dried up, leading the Panama Canal Authority to limit the number of ships passing through. The Panama Canal Authority reduced the daily number of ships passing through from 36 to 32 at the end of July, and with the ongoing drought, it is considering further reducing it to 30 ships.

Earlier, since June, the Panama Canal Authority also limited the average ship draft (the depth of the ship submerged in water) from 50 feet (15 m) to 44 feet (13 m). This means ships must reduce their cargo load to pass through the canal, which ultimately leads to increased shipping costs.

As ship traffic decreases, bottlenecks around the Panama Canal continue. As of the 12th, 116 ships were waiting to pass through the canal. Although this is an improvement from over 160 ships waiting in early last month, it still exceeds the usual waiting number of about 90 ships. Currently, major U.S. retailers such as Walmart and Amazon are increasing imports targeting Black Friday and Christmas sales, but logistics conditions are worsening. Some experts warn that if Panama’s dry season, which lasts from December to April, starts early and average temperatures rise, the drought could worsen, potentially lowering Lake Gatun’s water level to a historic low.

Vasquez Morales, head of the Panama Canal Authority, said in an online press conference, "Due to abnormally high sea temperatures, unpredictable rainy seasons, and the continued El Ni?o weather phenomenon, we will need to continue limiting ship traffic until next year," adding, "There is no immediate possibility of the canal escaping the restrictions caused by drought."

If the Panama Canal traffic restrictions are prolonged, Korean export companies may also face increased burdens. Korea ranks fifth among Panama Canal users after the United States, China, Japan, and Chile.

KOTRA’s Panama Trade Office recently reported, "If the drought continues through September and October and the dry season begins, a very difficult situation could arise due to increased year-end cargo volume," advising, "Export companies need to prioritize cargo passing through the Panama Canal and manage shipping and loading schedules to prepare for worsening congestion."

This content was produced with the assistance of AI translation services.