# US trade dominates Panama Canal traffic. A drought is threatening it

> The US is the largest user of the Panama Canal, with about 73% of canal traffic tied to US commodity containers. The Panama Canal Authority plans to cut daily Panamax transits from 36-34 to 32-30 to conserve water and delay depth restrictions.

- Date: 2023-06-24 · published 2023-06-24T12:00:00.000Z
- Category: logistics · region US · magnitude medium
- Page: https://feedsoft.ai/events/35379-us-trade-dominates-panama-canal-traffic-a-drought-is-threatening-it
- Commodities: [Ocean Grain Freight](https://feedsoft.ai/c/OCEANFRT.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

Fewer daily transits tighten capacity for US exports and raise freight rates, which can widen basis and lower farm-gate prices for Gulf-bound grain. Ocean freight costs are likely to rise for grain and feed shippers.

## Read by commodity

- SOY: bearish ▼
- CORN: bearish ▼
- OCEANFRT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2020-01-15 | [Panama Canal adds fees, changes booking as it fights drought \| Supply Chain Dive](https://feedsoft.ai/events/54986-panama-canal-adds-fees-changes-booking-as-it-fights-drought-supply-chain-dive.md) | +0.3% | -2.4% |
| CORN | 2019-04-30 | [Drought hits Panama Canal shipping, highlights climate fears \| AP News](https://feedsoft.ai/events/59496-drought-hits-panama-canal-shipping-highlights-climate-fears-ap-news.md) | +0.9% | +8.9% |
| CORN | 2023-11-09 | [Panama Canal crisis forces US farm exports to detour through Suez](https://feedsoft.ai/events/33062-panama-canal-crisis-forces-us-farm-exports-to-detour-through-suez.md) | -1.5% | -1.0% |
| CORN | 2019-05-06 | [Panama Canal Drought Puts Bullseye on U.S. Gulf Crop Exports -](https://feedsoft.ai/events/58988-panama-canal-drought-puts-bullseye-on-u-s-gulf-crop-exports.md) | -3.2% | +10.5% |
| CORN | 2023-12-11 | [Panama Canal drought to delay grain ships well into 2024 \| Reuters](https://feedsoft.ai/events/32462-panama-canal-drought-to-delay-grain-ships-well-into-2024-reuters.md) | +1.0% | -0.7% |
| SOY | 2020-01-15 | [Panama Canal adds fees, changes booking as it fights drought \| Supply Chain Dive](https://feedsoft.ai/events/54986-panama-canal-adds-fees-changes-booking-as-it-fights-drought-supply-chain-dive.md) | -1.6% | -3.9% |
| SOY | 2019-04-30 | [Drought hits Panama Canal shipping, highlights climate fears \| AP News](https://feedsoft.ai/events/59496-drought-hits-panama-canal-shipping-highlights-climate-fears-ap-news.md) | -3.5% | +1.0% |
| SOY | 2023-11-09 | [Panama Canal crisis forces US farm exports to detour through Suez](https://feedsoft.ai/events/33062-panama-canal-crisis-forces-us-farm-exports-to-detour-through-suez.md) | +2.7% | -2.8% |

## Sources

- cnbc.com: https://www.cnbc.com/2023/06/24/us-trade-dominates-panama-canal-traffic-a-drought-is-threatening-it.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.