Heavy Rains and Severe Droughts: Weather Emergencies Continue

Severe drought in the Panama Region has created a low water situation in the Panama Canal. Reuters recently reported: “The Panama Canal will impose lower draft restrictions on the largest ships passing through the key global trade route due to falling water levels at nearby lakes that form part of the waterway, the canal authority said on Tuesday.”

This issue means that vessels cannot load as many containers on the ships. While cargo volumes remain light, this is not a big problem, but if it continues, we may start to see Canal surcharges or other measures taken.

Meanwhile, on the other side of the world, Auckland, New Zealand, is under a State of Emergency due to heavy rainfall and most warehouses and many winery operations are temporarily shut down. Officials are urging residents to prepare for potential evacuations and take precautions when traveling on the roadways. 

We will continue to monitor both of these situations and provide updates as they become available.