Panama Canal must 'adapt or die' as water levels drop

The Panama Canal, an engineering wonder allowing ships to travel between two oceans, is seeking to adapt to climate change after a biting drought has seen traffic and income dry up.

The canal relies on rainwater to move ships through a series of locks that function like water elevators, raising the vessels up and over the continent between the Atlantic and Pacific Oceans.

However, a water shortage due to low rainfall has forced operators to restrict the number of vessels passing through, which is likely to result in a $200 million drop in earnings in 2024 compared to this year, canal administrator Ricaurte Vasquez said.

The Pacific warming phenomenon known as El Nino, meteorologists say.

"The big disadvantage that the Panama Canal has as a maritime route, is that we operate with freshwater, while others use seawater," said Vasquez.

"We have to find other solutions to remain a relevant route for international trade. If we don't adapt, we are going to die."

The 80-kilometre byway moves some six percent of all global maritime commerce, and 2023 revenue is forecast at $4.9 billion, said Vasquez.

The canal opened in 1914 after a monumental construction project through dense jungles and mountains, with workers suffering tropical diseases, intense heat and rain.

Since then, more than a million vessels have transited through the canal, saving them a lengthy journey around the tip of South America.

The drought has forced canal administrators to restrict the waterway to ships with a draft of 13,11 metres - which refers to how deep they sit in the water.

In 2022, an average of 40 ships crossed through the canal a day, a number which has now dropped to 32 to save water.

For each ship, 200 million...