reply Panama Canal's "new low" impacts international trade due to water shortages

Over the past few months, Latin America, including Panama, has been experiencing low rainfall, and the Panama Canal is facing a drought as water levels in lakes and rivers have dropped. The decline in water levels in the Canal means that the draft depth of shipping is limited, and the number of ships passing through is reduced. Industry insiders are concerned that international logistics costs may rise as a result, pushing up the price of international raw material markets and adversely affecting the global supply chain.　　Suffering from drought　　The Panama Canal is located in Central America, connecting the two major water systems of the Atlantic Ocean and the Pacific Ocean, and is one of the important global shipping lanes. According to data from the Panama Canal Authority, the Panama Canal currently provides about 180 sea routes that connect about 170 countries and reach about 1,920 ports around the world. U.S. Department of Commerce data show that the Panama Canal is the shipping trade between Asia and the United States "artery", the volume of goods transported through the canal accounted for Northeast Asia to the U.S. East Coast of the total container market share of 46%.　　Panama's meteorological department said that this year, the El Niño phenomenon swept through Latin America, Panama and other countries have experienced a long period of low rainfall and high temperature weather, drought in many areas. AFP said that Gatun Lake, which supplies water to the Panama Canal, and other areas have seen the lowest water levels on record.　　Affected by the lack of water, the Panama Canal Authority has recently adjusted downward several times the ship's draft depth regulations. Some large ships have had to reduce their loads in order to pass.　　Impact on Logistics　　The Wall Street Journal reports that declining capacity in the Panama Canal will hurt agricultural trade between the northern and southern hemispheres. Bananas from Ecuador, meat from Brazil, and wine from Chile would have been shipped through the Panama Canal.　　Commodity transportation, such as energy, could also be affected. The U.S. Consumer News & Business Channel says that about 26 percent of the Panama Canal's annual shipping business involves liquefied petroleum gas, liquefied natural gas and more. Although energy carriers are not affected by the new regulations on draft restrictions, congestion in the canal caused by falling water levels and an increase in smaller vessels could affect transportation efficiency.　　Li Qiang, dean of the School of International Relations at Tianjin Foreign Studies University, said climate change has raised concerns about disruption to international logistics. Measures taken by the Panama Canal Authority may force non-compliant ships to detour around Cape Horn in South America, or make cargo ships drastically reduce their carrying capacity, and goods of the same weight are spread out over more cargo ships, both of which will significantly increase logistics costs and lengthen the logistics time, which will have a negative impact on international trade.　　Extreme weather may also impact the global trade order. Li Qiang said, the Panama Canal shipping costs, or will lead to energy, agricultural products, basic raw materials and other commodity prices, and thus exacerbate the food crisis, energy crisis, global inflation, etc., or will strengthen the developed countries in the existing trade order and supply chain in the dominant position, expanding the North-South countries "scissors gap", and exacerbate the relative disadvantage of developing countries. The relative disadvantages of developing countries will be exacerbated.　　Joint Response　　Forbes magazine reports that the persistent heat and drought in Panama has led to a rethinking of climate change. People are increasingly aware of the importance of achieving low-carbon environmental protection and promoting the sustainable development of the canal shipping industry.　　Li Qiang said that in order to cope with the impact of climate change on economic activities, it is necessary for the international community to accelerate the green and low-carbon transformation. Countries should honor their "Nationally Owned Contributions" commitments, reduce carbon dioxide emissions, achieve carbon neutrality as soon as possible, and keep global warming within 2 degrees Celsius of the pre-industrial revolution level and as close as possible to 1.5 degrees Celsius. At the same time, countries should also strengthen climate resilience-building and enhance their capacity to adapt to climate change. Developed countries should fulfill their $100 billion climate finance commitment as soon as possible to help developing countries enhance their capacity to adapt to climate change.　　"In the face of increasingly frequent extreme weather events and increasing costs of climate disasters, countries should carry out pragmatic and close cooperation, adhere to the principle of common but differentiated responsibilities, and implement the requirements of the United Nations Framework Convention on Climate Change and the Paris Agreement as soon as possible, so as to fundamentally reduce the frequency of extreme weather events." Li Qiang said.