The Panama Canal is facing severe operational challenges because of declining freshwater availability. Mass felling of trees in the watershed area of the Canal has drastically reduced the region’s ability to retain water and attract rainfall. Rising global temperatures and irregular precipitation patterns caused by climate change have disrupted the Canal’s freshwater supply significantly. This has resulted in lower water levels in Gatún and Alajuela Lakes, freshwater sources for the operations of the Canal. These declining water levels have led to shipping restrictions, increased transit fees, and economic strain on Panama's economy. Local communities are suffering from water shortage, forced displacement, and socio-economic instability because of conservation projects and alternative water management strategies. This study examines the underlying causes, consequences, and mitigation measures related to the drying of the Canal. Some interventions are identified: large-scale reforestation, improved water conservation techniques, and enhanced governance to mitigate this crisis. The Canal requires an integrated approach to secure its future in sustaining global maritime trade.
Mathew et al. (Sat,) studied this question.