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Ships Take Long Way Around as Drought Snarls Panama Canal

Bloomberg Markets Tuesday 06 October 2026, 17:53 UTC By Antonia Mufarech and Patricia Garip 1 min read
Key Points

Ships Take Long Way Around as Drought Snarls Panama Canal Maritime traffic through the Strait of Magellan jumped more than 70% both in August and September from year-ago levels as ships diverted from the drought-stricken Panama Canal, Chilean Navy data requested by Bloomberg show. Sparse rainfall linked to El Niño lowered water levels in the Panama Canal, prompting authorities to restrict crossings. Middle East disruptions have also prompted some operators shipping goods from South America...

Ships Take Long Way Around as Drought Snarls Panama Canal Maritime traffic through the Strait of Magellan jumped more than 70% both in August and September from year-ago levels as ships diverted from the drought-stricken Panama Canal, Chilean Navy data requested by Bloomberg show. Sparse rainfall linked to El Niño lowered water levels in the Panama Canal, prompting authorities to restrict crossings. Middle East disruptions have also prompted some operators shipping goods from South America and West Africa to Asia to avoid the region and likely reroute through the Strait of Magellan, Bloomberg Intelligence analyst Kenneth Loh said.
the Strait of Magellan (LOCATION) Panama Canal (LOCATION) Chilean Navy (ORG) Bloomberg (ORG) El Niño (ORG) the Panama Canal (LOCATION) Middle East (LOCATION) South America (LOCATION) West Africa (LOCATION) Asia (LOCATION) Bloomberg Intelligence (ORG) Kenneth Loh (PERSON)
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