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The concept the Panama Canal suffers from a water scarcity could seem counterintuitive on condition that it spans solely 50 miles between two oceans. Nonetheless, the canal’s lock system depends on recent water provides that come primarily from the man-made lakes Gatun and Alajuela. Attributable to a scarcity of rain this yr, the Panama Canal Authority has applied a number of water conservation and canal restriction measures to accommodate decrease water ranges, and bids to safe passage have hit file highs.
Drought has threatened to disrupt the canal’s operations at different instances in current instances, specifically in 2019–20 and 2014–16. Worryingly, droughts have occurred extra incessantly. Decreased site visitors on the canal is anticipated to final for a minimum of one other 4 months, elevating considerations about provide chains and inflation.