Yet Another Outdated Technology Struggling to Adapt to the Changing Climate
For over a hundred years, the Panama Canal, an incredible engineering feat that first opened in 1914 and handles approximately 5% of global maritime trade, has played a vital role as a practical route for shipping between the Pacific and Atlantic oceans. However, the current drought situation has resulted in insufficient water levels, crucial for the operation of the canal’s locks that raise and lower ships. This has compelled authorities to reduce the number of transits through the canal, causing logistical challenges for shipping companies and raising intricate concerns about water use. Interestingly, the passage of a single ship through the canal consumes a volume of water equivalent to the daily water consumption of half a million Panamanians.
▶ Certainly, Panama typically boasts an equatorial climate, which ranks it among the world’s rainiest countries. However, this year, the region has experienced a significant drop in rainfall, approximately 30% below the usual levels. Consequently, the lakes that supply the canal with water and its essential locks have seen a decline in water levels. The primary culprit for this situation is the El Niño climate pattern, which initially brought about exceptionally hot and dry weather. There is growing concern that the effects of climate change could potentially prolong this drought and lead to elevated temperatures in the region.
▶ Before the water supply issues emerged, the canal accommodated up to 38 ship transits daily. This remarkable waterway, originally constructed by the USA and under its administration until 2000, reduced the daily average to 32 vessels in July. On November 1, the canal authority announced a further reduction to 31 daily transits.. Additional cutbacks might be necessary if water levels fail to rebound. In response to the water shortage, the canal’s management has also imposed restrictions on a ship’s maximum draft, significantly affecting its cargo-carrying capacity.
▶ Container ships, transporting finished consumer goods, typically secure their passage well in advance and don’t face extensive delays. However, for ships transporting bulk cargo, the usual practice isn’t to reserve passage. This decision is primarily driven by cost considerations. Companies face the dilemma of either enduring multiple days of waiting, paying a substantial fee to expedite their passage, or circumventing the canal entirely by opting for the longer route. Some notable instances have been documented, where companies resorted to paying as much as $400,000 in special auctions to move their vessels to the front of the line, effectively doubling their canal usage costs. In certain cases, companies have been compelled to pay over $2 million. Obviously, a portion of these additional expenses will ultimately be passed on to consumers, potentially contributing to inflationary pressures.
▶ Shipping experts are expressing concerns that if the situation gets worse, containers may soon be compelled to completely bypass the canal. A reduced number of transits could potentially result in a substantial annual revenue loss for the Panamanian government, amplify shipping expenses, and lead to increased greenhouse gas emissions from longer alternative routes.
▶ It’s anticipated that the canal’s traffic will continue to operate at reduced levels in the months ahead. The decision to curtail passages is driven by the aim to conserve water, as a significant volume is consumed with each ship’s journey through the locks, spanning the 40 miles of Panama. Nevertheless, a fundamental challenge arises: how to strike a balance between the canal’s water requirements and the needs of the region’s residents. Over half of the population relies on the same water sources that supply the canal, creating a complex dilemma.
Undoubtedly, there are alternatives, although they may be costly, time-consuming, and inconvenient. But it’s imperative to address a pivotal fact: during the construction of the canal, Panama was almost entirely covered in forests, but extensive deforestation has since dramatically transformed the landscape. This shift has had profound repercussions on various factors that contribute to climate stability, such as evaporation, transpiration, humidity, aquifer replenishment, runoff, temperature, sedimentation, etc. While some climate change is attributed to the burning of hydrocarbons, failing to admit the long-term consequences of deforestation is equal to deliberately overlooking a global issue, not limited to Panama alone. The ancient forests and untouched prairies around the world once created the idyllic Earthly paradise that we inherited. Regrettably, corporations played a significant role in their destruction, often at their own peril and risk. It appears that we’ve reached a juncture where it’s no longer tenable to disregard this problem, which is plainly evident even on platforms like Google Earth.