Drought, driven by a combination of El Niño and climate change, has disrupted shipping through the Panama Canal in recent months. Dropping water levels in Lake Gatun forced Panama Canal authorities to pose restrictions on the number of ships that can pass the canal, dropping from the normal 38 down to 24 transits a day by November 2023, causing long queues at nearby ports as ships wait their turn to pass. If the restrictions remain in place through 2024, there could be up to 4,000 fewer ships—with cargo ranging from children’s toys, to solar panel components, to life-saving insulin—passing the canal in 2024. Delay and disruption along shipping routes will only become a more common occurrence in a warmer world. These 7 graphics show how drought threatens serious disruptions to the global supply chain.
1. Panama in Drought
Panama is currently suffering a prolonged drought that began in early 2023 and has not let up. In October, rainfall was 43% lower than average levels, making it the driest October since the 1950s. For the area around the canal, 2023 was one of the driest two years since record keeping began in the country.
2. El Niño-driven dryness exacerbated by climate
Panama’s severe drought is being exacerbated by the double-whammy of a strong El Niño and record-breaking global warming— exceeding the pre-industrial temperature average by 1.35 C. El Niño is a natural climate fluctuation that brings warmer-than-average air and ocean waters to the West coast of the Americas. That influx of warmth can vary in strength and last between nine and twelve months, and the National Oceanic and Atmospheric Administration (NOAA) predicts it will continue into at least April of 2024.
The severity of El Niño fluctuations is linked to climate change. Climate modeling shows swings between El niño and its counterpart La niña have been growing more extreme, resulting in the more frequent and intense events seen in the past few decades Under high emission scenarios, in which we don’t get warming in check, El Niño events could become 15-20% stronger.
3. Gatún Lake levels continue to drop
The drought has had a particularly profound effect on the man-made Gatún Lake, which holds the water supply that operates the Panama Canal. On January 1, 2024 water levels in Gatún Lake were lower than in any other January on record, almost 6 ft lower than January 1, 2023. Millions of gallons of water from Gatún, along with other regional lakes, are used to fill the locks that raise ships above sea level for the passage over Panama’s terrain. Insufficient water supply jeopardizes ship passage
Not only does Gatún Lake feed the locks that power the Canal, it also supplies drinking water to millions of residents in the central region of the country, including two major cities: Panama City and Colón. As both Panama’s population and the scale of global shipping has grown, there has been greater demand on the lake for freshwater.
4. Less water means fewer, smaller ships
In response to dropping water levels, Panama Canal Authorities have been forced to institute restrictions on ship passages. Ship transits are currently limited to 24 per day until April of 2024, when the authorities will re-evaluate at the start of the rainy season. The number of ship passages was 30% lower than usual by the end of 2023. The unreliability of transit through Panama has already prompted some ships to re-route.
Lower water levels also restrict the size of ships that can pass through the canal, as larger, heavier vessels sit lower in the water, putting them at higher risk of running aground in shallower waters. Large ships also require more lake water to lift them in the locks. As global shipping volume has grown, many shipping fleets have, too— relying on massive vessels that can carry more goods, but are harder to navigate through shallow waterways like the Panama Canal.
5. Disruptions in Panama affect global trade
The Panama Canal accounts for 5% of global shipping, so disruptions here affect the worldwide supply chain, resulting in delayed shipments, more fuel usage, and GDP losses.
The impacts of shipping disruptions in the Panama Canal are also being compounded by political events in the Red Sea. The Suez Canal, an alternative route for ships bound between Europe and Asia, has also had shipping disrupted by attacks from the Houthis, a Yemeni military group targeting Israel-bound ships. With both the Panama and Suez Canals becoming less reliable routes, more ships will be forced to take the long way around— traveling down to the southern points of Africa and South America.
6. Arctic ship travel does not offer an alternative route
Far to the north, another waterway is being rapidly altered by climate change. As the Arctic warms faster than any other place on the planet, summer sea ice has been disappearing at a rate of almost 13% per decade. This has opened up new lanes of ice-free water that some countries are eying as potential new routes. But navigating through a melting Arctic is still dangerous, and the majority of new ship traffic in the Arctic is comprised of smaller military or fishing boats, rather than the large shipping vessels used to carry commercial cargo.
Furthermore, increased ship traffic in the Arctic has the potential to further emissions, as melting ice could open up access to new sources of oil and natural gas— perpetuating climate warming.
7. Temperatures are still rising
Though December rains saved Panama Canal officials from instituting further restrictions on ship passage, the region is still experiencing El Niño, and sea surface temperatures in early 2024 have continued to climb higher than 2023. Each day in 2024 has recorded the highest temperatures on record for that calendar date. The only path to stabilizing global shipping lies in stabilizing the global climate.
Summit County, Utah is preparing for a changing climate.
The high-elevation county boasts a strong winter sports economy, vast swaths of national forest and agricultural land, and a population of 43,000 people that stand to be affected by climate-driven changes. The risks to the county’s health and economy from climate change were outlined in a recent report by Woodwell Climate, and shared with the community through the first in a series of climate change and public health panels.
The risk assessment was completed as a part of the Center’s Just Access initiative to provide free climate risk insights to municipalities across the globe, in order to equip them for the changes ahead. Working with members of Summit County’s Sustainability Department, as well as members of the community at large, the Woodwell team targeted three major climate risk variables for analysis— drought, water scarcity, and wildfire.
According to Emily Quinton, Sustainability Program Manager for Summit County, these risks are ones the county is already concerned about, based on existing conditions, but wanted to know what that would mean for them in coming decades.
“We have some good baseline knowledge about the risks we are facing already,” Quinton said. “What was different and new that the Woodwell assessment could offer was those much longer-term future projections.”
In Summit County, the Sustainability Department is a subset of the Public Health Department, which encouraged the risk assessment to delve into the ways in which climate risks affect the health of county residents. Changes in water availability were a particular concern for the department.
The report found that the northern and easternmost portions of the county are most likely to be affected by drought. Summit County is already experiencing severe drought conditions 40% of the year; that number is expected to increase to 50% by midcentury.
Water scarcity will also increase. Driven by both increasing demand from the population and decreasing availability, water scarcity in most communities within Summit County is expected to be at 189% by 2030— meaning demand will be nearly twice that of available supply.
“With the drought and water scarcity topics,” said Quinton, “making the connection between how a decrease in water quantity will place risk on water quality was important. Monitoring water quality is a really crucial responsibility of the Public Health Department.”
Woodwell Research Assistant, Darcy Glenn, who worked previously in Summit County’s Sustainability Department and helped facilitate the production of the report says, “If you don’t have any water in your wells, water quality goes down because you don’t have enough to dilute any contaminant that might be a problem.”
Summit County currently grapples with wildfire threat as well. Wildfire danger days— in which temperature and moisture conditions make fires more likely to burn out of control— will become a more common occurrence, leading to fires that cause more evacuations, damage, and air quality concerns. The majority of the county will add eight or more wildfire danger days to their year by the end of the century.
Climate Change and Public Health
Public health can be a less polarizing context in which to discuss climate risks publicly. Despite the political nature surrounding climate change in some regions, Glenn notes public health can serve as a lens most people relate to and take seriously.
“It can be hit or miss on climate change, but if your kid has asthma, you want to know about your air quality. Changes in the environment, whether people acknowledge climate change or not, align with things they’ve seen,” says Glenn. “So we’re trying to approach the topic in a way that’s accessible and start a conversation that’s welcoming to the whole community.”
After the completion of the assessment, Woodwell Risk team members presented the information to the Summit County Board of Health, then opened up communications with the public. In May, the county’s Health Department hosted the first of three planned events in a speaker series, focused on sharing the results of the report to help county residents better understand the extent of risk where they live. Glenn spoke alongside local climate experts and took questions from attendees.
The next two events in the series will discuss the physical and mental health impacts of climate change, as well as some potential adaptation solutions. According to Quinton, these events will aid the county in developing plans for resilience that address the top concerns of the public.
“Climate preparedness can’t happen without an understanding of what the potential risks are. The Climate Risk Assessment and the public events feel like important steps to more directly integrate climate change into the preparedness work Summit County is already doing,” says Quinton.