CNN —An “unprecedented drought” is affecting the Panama Canal’s water supply and leading authorities to impose surcharges and weight limits on ships traversing the key global trade route, according to the Panama Canal Authority. Ships move through the Panama Canal through a lock system, which uses water from several freshwater reservoirs to float the massive cargo vessels overland. But Panama is currently gripped by drought, and water levels at least one of those reservoirs – Gatun Lake – are dropping. But the start of El Niño “could worsen” conditions, the Panama Canal authority also warned. Regional neighbors have sought opportunities to compete with the lucrative Panama Canal.

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Persons: El Niño, El, Cape Horn Organizations: CNN, Panama Canal Authority, Ships, Panama City, Panamanian National Government, El, Pacific, United Locations: Panama, Central America, El, South America, Cape, Asia, United States, Panamanian, Panama Canal, Nicaragua, Mexico, Pacific, Gulf of Mexico