Lack of water leads to big drop in number of ships using Panama Canal

A severe drought that began last year has forced authorities to slash ship crossings by 36% in the Panama Canal (AP Photo/Agustin Herrera)

A severe drought that began last year has forced authorities to slash ship transits by 36% in the Panama Canal, one of the world’s most important trade routes.

The new cuts announced on Wednesday by authorities in Panama are set to deal an even greater economic blow than previously expected.