A drought in the canal would affect the US economy

Measures implemented Panama Canal dealing with the drought would have an impact on the economy of its major clients, including the United States.

According to a CNBC report, while some restrictions have been delayed, the drop in cargo capacity will make containerized goods more expensive for shippers and affect many key sectors of the US economy, from agriculture to energy and retail.

In this sense, remember that Panama Canal it is the primary commercial gateway used by US carriers for Gulf and East Coast ports.

40% of all US container traffic travels through the Panama Canal each year, totaling approximately $270 billion in cargo annually.

According to the chain in question, US carriers and industry analysts are concerned about the imposition of additional fees due to the drop in water levels.

“Low water levels within the Panama Canal system continue to affect the prices of cargo moving from Asia to east coast. It will certainly be necessary to consider the long-term question of how environmental change connects to global supply chains,” said Alan Baer, ​​CEO of OL USA.

The situation in interoceanic route This would also have an impact on the clothing and footwear industry.

“Panama Canal surcharges and ship restrictions will likely mean higher prices for clothing and footwear for American consumers this holiday season,” said Stephen Lamar, president and CEO of the American Apparel and Footwear Association.

In this context, the Panama Canal Authority is concerned about the impact of rising tariffs and the possibility that shippers and industry will seek alternative trade routes.

“Let’s do it presentation to our board of directors this month. We will probably give our customers a break. We have to do this to ensure that we are a sustainable route in the long term,” said Ricaurte Vásquez, Panama Canal Administrator.

Vásquez explained that while there are no effects on transit, a reduction in the number of ships coming to Panama has been detected. However, this decrease coincides with a historical date of lower arrivals.

For this reason, analyzes are being carried out to determine whether the reduction is due to the season or whether shippers are opting for other routes.