32: How a Drought in the Panama Canal is Disrupting Global Supply Chains

Climate change is causing unprecedented weather conditions around the world. In recent months, a severe drought exacerbated by El Niño has caused water shortages in Central America that are expected to persist well into 2024. As a result, the Panama Canal — one of the world’s most vital waterways for international commerce — has become increasingly impassable.

This episode explores climate change, international shipping, and what happens when a pivotal passage for global supply chains becomes unreliable.

Discussants

• Ed Emmett, Baker Institute’s Fellow in Energy and Transportation Policy
• David A. Gantz, Baker Institute’s Will Clayton Fellow in Trade and International Economics

This discussion is based on a issue brief published on October 2, 2023 by David A. Gantz titled, "Supply Chain Alternatives for Ocean Shipping if Climate Change-driven Water Shortages Persist at the Panama Canal," available at bakerinstitute.org.