From bananas to LNG, Panama Canal backlog has wide-reaching implications

A backlog of ships at the Panama Canal due to a drought and reduced water levels is causing delays and higher costs for goods, including perishable items and energy, potentially impacting the holiday season and leading to higher prices and fewer options for customers. The importance of the Panama Canal has grown with globalization, and the backlog highlights the vulnerabilities of a globalized economy. The water shortage in Panama, exacerbated by climate-related factors, is expected to worsen in the future, leading to potential spillover effects and prompting companies to reconsider their operations.

aljazeera.com

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8/25/2023

Panama’s Canal Is Drying Up and Its Bonds Are Getting Hit Hard

The drought affecting water levels in the Panama Canal is causing concern among investors, leading to a selloff of Panamanian government bonds and a negative impact on the country's economy.