Ongoing Panama Canal Drought Threatens Global Supply

Prolonged dry weather throughout Latin America is impacting global supply chains, although some relief is expected as the rainy season picks up pace in mid-June.

The Panama Canal has been limiting the number of vessels passing through daily for months, causing bottlenecks and backups. Mexico has faced drought conditions for nearly a year, with total precipitation reported to be approximately 50% lower than the national average.

The water shortage is causing production and supply issues, including several Force Majeure events, as production facilities lack the water needed to operate and employees struggle to secure water for daily needs.

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