We are expecting this year's El Niño to have an effect all over the planet, with it forecast to be one of the strongest in many, many years. There will be an increase in global temperatures, leading to an adjustment of weather systems and ocean temperatures too, but this won't be all, as now the Panama Canal has begun to adjust to the climate phenomenon.
As per BBC News, the Panama Canal Authority has told shipping firms it will be reducing the amount of ships it can let pass through each day, dropping the figure from 36 to 32, all because of the effects of El Niño.
You might be wondering how El Niño directly would lead to a reduction in Panama Canal activity. The ACP has explained this is part of an effort to protect service reliability and to safeguard water resources for human consumption, with this reduction set to come into effect starting from September 3.
This will likely have an immense impact on global shipping, especially since the conflict in the Middle-East has reduced shipping routes in the Strait of Hormuz, which combined with fewer ships taking advantage of the canal - which eliminates a need for shipping vessels to travel all the way around South America when looking to navigate from the Pacific to the Atlantic oceans - will mean global trade will take a hit.
It's estimated the Panama Canal lets around 14,000 ships a year pass through, which means an approximate 11% reduction could account for as many as 1,500 ships on an annual basis.
