The Panama Canal is under pressure from climate change, drought, and economic strain—this DW Documentary reveals the urgent challenges threatening one of the world’s most vital trade arteries.

Panama’s famous canal connects the Atlantic and Pacific Oceans. However, this critical gateway for world trade is increasingly blocked. Cargo ships often have to wait weeks for passage because water levels in the canal are too low. The cause? Drought.

Every day, 30 to 40 ships pass through the Panama Canal, carrying approximately 1.5 million tons of cargo. The authorities are prepared to do just about anything to preserve the valuable canal. It is, after all, Panama’s main source of income. They regularly pump as much water as possible from the country’s reserves into the canal. This water is needed to operate the locks. However, it is also a source of drinking water, and the population relies on it. For every ship that passes through, 200 million liters of freshwater flow into the sea.  

At the height of the crisis in 2023, over 163 ships had to drop anchor. More and more container ships, therefore, prefer to bypass the Panama Canal, even if it means taking a long detour. For those in a hurry, a solution is available. The canal authority auctions off emergency passages. These can cost up to $2.5 million, 40 times the standard rate.

Panama serves as a crucial transit route for goods. But it’s also part of a dangerous human migration route. In 2023, half a million men, women, and children risked their lives on the waterway in an attempt to reach North America. Despite the risks, an increasing number of migrants arrive every year.

The Panama Canal Is Drying Up — And Global Trade May Follow

Climate change is disrupting one of the world’s most important shipping routes. Drought and overuse are revealing cracks in global supply chains and the urgent need for circular, adaptive infrastructure.

Klean Industries Helps Build Resilient Trade Systems Through:

✅ Sustainable energy and water reuse technologies
✅ Infrastructure designed for climate adaptation and carbon neutrality
✅ Real-time monitoring of resource use via KleanLoop™
✅ Circular economy strategies for ports, logistics, and global trade

Connect with Klean Industries to develop next-generation, climate-resilient infrastructure for global supply chain security » GO.