Drought at Panama Canal Sparks Concerns Over Global Supply Chain Disruptions

Trade & Border IssuesHot Spots
Written By Jennifer Joslyn

Panama is experiencing one of its driest rainy seasons on record, leading to lower water levels at the Panama Canal and restrictions on vessel weights and daily traffic. While the immediate impact on the U.S. supply chain appears limited, potential disruptions loom as multiple maritime choke points face challenges, including lower water levels in the Mississippi River. The cumulative effect of these issues could magnify supply chain problems, impacting service reliability, shipment delays, and holiday shopping. Companies have diversified their supply chains and increased inventory levels, but risks remain as uncertainties persist in the global shipping environment.

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Jennifer Joslyn
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