The Panama Canal is Enduring One of its Worst Droughts and it Could Cost it up to $700 million

Cargo ships wait in Panama Bay for transit through the Panama Canal. (Credit: Agustin Herrera/Associated Press)

The Panama Canal is battling one of the most severe droughts to ever hit Central America, and is set to deal the country a strong economic blow.

The drought, which began last year, has forced authorities to cut Panama Canal ship crossings by 36%. According to Ricaurte Vásquez, the Panama Canal administrator, the drop in traffic will cost the counrty between $500 million and $700 million in revenue in 2024 — much more than the $200 million originally estimated.