Panama canal traffic to be cut again as drought from El Niño worsens

# Why This Matters The Panama Canal's water restrictions represent a critical chokepoint in global commerce at a moment when supply chains are already fragile. Nearly 6 percent of world trade passes through the canal annually, and reduced transit capacity forces shipping companies to reroute vessels around Cape Horn—adding weeks to voyages and tens of thousands of dollars in fuel costs per ship. These delays and expenses ripple directly into consumer prices for goods ranging from electronics to automotive parts, while also straining relationships between trading partners who depend on predictable shipping schedules. The crisis underscores how climate volatility, particularly El Niño weather patterns, can weaponize geography against economic stability, potentially forcing a permanent reckoning with infrastructure capacity in an era of increasingly severe droughts.