# Drought hits Panama Canal shipping, highlights climate fears | AP News

> Drought in the Panama Canal basin has forced draft restrictions, so large ships, mainly from the U.S. and China, must transit with less cargo. The driest period on record for the basin is also affecting communities that depend on tourism along its tributaries.

- Date: 2019-04-30 · published 2019-04-30T12:00:00.000Z
- Category: logistics · region Panama · magnitude medium
- Page: https://feedsoft.ai/events/59496-drought-hits-panama-canal-shipping-highlights-climate-fears-ap-news
- 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

Reduced draft cuts cargo per voyage and raises per-ton shipping costs for U.S. grain and coal headed to Asia, supporting freight rates and reinforcing the case for Atlantic-route alternatives.

## 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 | 2024-08-14 | [Gas and grain ships shun Panama Canal after drought disruption](https://feedsoft.ai/events/17006-gas-and-grain-ships-shun-panama-canal-after-drought-disruption.md) | -0.7% | +0.6% |
| 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% |
| CORN | 2023-06-24 | [US trade dominates Panama Canal traffic. A drought is threatening it](https://feedsoft.ai/events/35379-us-trade-dominates-panama-canal-traffic-a-drought-is-threatening-it.md) | -8.7% | -0.3% |
| CORN | 2023-06-22 | [Panama Canal further limits ship depth \| World Grain](https://feedsoft.ai/events/35378-panama-canal-further-limits-ship-depth-world-grain.md) | -8.7% | -14.9% |
| SOY | 2023-08-21 | [Focus: Historic drought, hot seas slow Panama Canal shipping \| Reuters](https://feedsoft.ai/events/34460-focus-historic-drought-hot-seas-slow-panama-canal-shipping-reuters.md) | +1.3% | -3.4% |
| 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 | 2024-08-14 | [Gas and grain ships shun Panama Canal after drought disruption](https://feedsoft.ai/events/17006-gas-and-grain-ships-shun-panama-canal-after-drought-disruption.md) | -3.2% | -0.9% |

## Sources

- apnews.com: https://apnews.com/article/f0ab0672ca284c01b0ced4a648c48d88

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