An interesting story of a sort upon which we normally don’t report. Instapundit links to a site called GCaptain, seemingly intended for would-be and actual ship masters. The story involves the economic impact of reduced water levels in Gatun Lake.
Some background: The Panama Canal relies on Gatun Lake to provide the fresh water that ships transit going from one ocean to another. Gatun Lake in turn relies on the plentiful rainfall tropical regions usually get so that no massive pumping of water is required as locks are filled and emptied as ships rise up, transit the isthmus, and descend down the other side back to the sea. The system is largely powered by gravity, which is to say, falling water.
What the article reports is a lack of rainfall in Panama, the lake level is dropping. The Canal Authority responds by requiring ships to have somewhat shallower draft, meaning lightening their loads of containers. It also responds by cycling fewer ships through the canal than formerly, reducing water usage. It does so by raising prices for transit, classic Econ 101 price rationing.
Not only is Panama already experiencing a drought, but there is an El Niño forming which brings more rain to some places, but usually makes Panama drier. The authors note the reduced passages and increased costs will force some shippers to find alternate ways to move cargo from Asia to East Coast ports. All such alternatives are more expensive and inflationary.
