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 Baker Briefing episode explores climate change, international shipping, and what happens when a vital passage for global supply chains becomes unreliable.
The discussion is based on an issue brief by fellow David A. Gantz, titled “Supply Chain Alternatives for Ocean Shipping if Climate Change-driven Water Shortages Persist at the Panama Canal” and published on Oct. 2, 2023. Read it here.
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