00:01Strengthening El Nino is disrupting global shipping at one of the world's most important waterways and it may begin to
00:08cost the consumer more.
00:09Drought is forcing the Panama Canal Authority to reduce daily ship traffic.
00:13Rainfall from May through August was 34% below the historical average, while water flowing into the canal's watershed plunged
00:2144%, according to the Canal Authority.
00:24That means fewer transit slots, longer waits, and fierce competition.
00:29One shipping company agreed to pay a record $5.3 million just to secure a transit slot, the Marine Insight
00:36News Network reports.
00:37That auction payment is separate from regular canal tolls.
00:41Lower water levels can also tighten draft restrictions, meaning vessels can't sit as low in the water, further reducing cargo.
00:47As El Nino strengthens, Panama could become even drier, potentially driving more delays and higher costs through global supply chains.
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