Drought Trade and Quick Solutions | Economic newspaper

2023-05-03 17:31:57

International shipping is responsible for transporting more than 80 percent of all world trade around the world. Maritime freight is the most efficient and least expensive way to transport goods at the global level, as it provides reliable and low-cost transportation services between countries, which facilitates trade and helps spread prosperity among nations and peoples.
The world depends on a safe and efficient international shipping sector, which is an essential component of any program aimed at green and sustainable economic growth. It also depends on important international sea passages in most of the world’s continents. If these passages are stopped by any natural, environmental or climatic action, they will certainly affect and disrupt navigation and cast a negative shadow on the movement of their trade and the growth of their economies.
Promoting sustainable shipping and the sustainable development of maritime navigation is a priority for all countries for the coming years. Also essential are energy efficiency, new technologies and innovations, education and training related to maritime navigation, maritime security, maritime traffic management and infrastructure development in terms of developing international standards for these issues highlighting IMO’s commitment to providing the necessary institutional framework for the maritime transport system Green and sustainable world.
It seems clear that the effects of environmental change affect almost everything, including, of course, the movement of trade at the global level. These changes began to negatively affect this or that sector. In the latest developments in this regard, specialists believe that drought threatens about 6 percent of world trade, why? Because the Panama Canal, which accommodates this level of trade, is facing increasing difficulties in operating the gates to control the passage of water and ships at the same time. This problem is not completely new in this channel that connects the Atlantic and Indian oceans, but it has recently worsened, which negatively affected the flow of tanker traffic across it. This canal, which opened at the beginning of the 20th century, is likely, “according to experts,” to really stop, if quick solutions do not appear to the problems resulting from the drought that struck part of its geographical area.
In the recent period, the global trade movement witnessed confusion due to the Panama Canal, because those in charge of it had to restrict this movement through it due to drought and the low water level in the lakes supporting it. Knowing that the majority of commercial traffic in this important strategic international sea corridor comes from the United States, Japan and China. In other words, the three largest economies in the world depend part of their movement on this vital channel. Even commodity prices are affected by this restriction, because deliveries are delayed and generally raise transport costs. Hence, questions arise regarding the performance of the Panama Canal in the coming years, if quick solutions are not found for the decline of Lake Alajuela and Gatun, which supplies the necessary water control gate.
It is noteworthy in this regard that the drought negatively affected the fishing movement in the lake referred to, with the decline of fish products and the animals in it. And if fishing does not represent great risks, it is the disruption or delay in the movement of transport across the canal that confuses the public scene. The first reason for the decline in the level of the lake that reinforces the canal is due to the lack of rainfall, which raises the pressure even more, to provide the water needed to control the traffic gates. Huge ships with a draft length of more than 15 meters cannot pass, and there are risks that threaten even smaller tankers in the future. Those in charge of the Panama Canal are seeking quick solutions to this crisis, which seems likely to continue in light of indications of a continuing drought in this region in particular.
The Panama Canal is a highly important waterway, as it reduced the tankers’ journey across the Americas from 21,000 km to 8,000 km, which provided more speed for trade and transport in general, and reduced costs. More than 14,000 ships pass through this channel annually, which are “again”, mostly American, Chinese and Japanese, while more than 70 thousand containers pass through the channel per week.
Therefore, any negative factor to which it is exposed affects not only the trade of the three major countries, but also the global trade movement. It suffices to mention here that the canal connects 160 countries and 1,700 ports around the world. There is no clear solution to the drought crisis in such a vital area, except to provide sufficient water for the lake supporting the canal, and this is not easy, at this stage, which will prompt those in charge of this sea corridor to further restriction in commercial activity, until the canal returns to its previous state. .