Editing Panama Canal (section)

==Issues leading to expansion==
{{Panorama
| image = File:Panama canal panoramic view from the top of Ancon hill.jpg
| height = 220
| alt = Panorama of Pacific entrance of the canal.
| caption = A panorama of the Pacific entrance of the canal. Left: Pacific Ocean and Puente de las Americas (Bridge of Pan-American Highway). Far right: The Miraflores locks. Foreground far right: [[Albrook "Marcos A. Gelabert" International Airport]].
}}

===Efficiency and maintenance===
Opponents to the 1977 [[Torrijos-Carter Treaties]] feared that efficiency and maintenance would suffer following the US withdrawal from the Panama Canal Zone; however, this has been proven not to be the case. In 2004, it was reported that canal operations, capitalizing on practices developed during the American administration, were improving under Panamanian control.<ref>{{cite journal |url=http://www.smithsonianmag.com/travel/panama.html |archive-url=https://archive.today/20120913044023/http://www.smithsonianmag.com/travel/panama.html |archive-date=13 September 2012 |title=Panama Rises |journal=Smithsonian Magazine |date=March 2004 |publisher=Smithsonian Institution |first=Bob |last=Cullen |access-date=30 April 2012 }}</ref> Canal Waters Time (CWT), the average time it takes a vessel to navigate the canal, including waiting time, is a key measure of efficiency; in the first decade of the 2000s, it ranged between 20 and 30 hours, according to the ACP. The accident rate has also not changed appreciably in the past decade, varying between 10 and 30 accidents each year from about 14,000 total annual transits.<ref name=annualreport2005>{{cite web |url=http://www.pancanal.com/common/general/reports/informe-anual-2005.pdf |title=ACP 2005 Annual Report |publisher=Panama Canal Authority |year=2005 |access-date=9 July 2010 |archive-date=6 May 2009 |archive-url=https://web.archive.org/web/20090506181207/http://www.pancanal.com/common/general/reports/informe-anual-2005.pdf |url-status=live }}</ref><ref name=metrics2008>{{Cite news |url=http://www.pancanal.com/eng/pr/press-releases/2008/10/24/pr300.html |title=News{{snd}}PanCanal.com; Panama Canal Authority Announces Fiscal Year 2008 Metrics |publisher=Panama Canal Authority |date=24 October 2008 |access-date=9 July 2010 |archive-date=7 May 2009 |archive-url=https://web.archive.org/web/20090507150245/http://www.pancanal.com/eng/pr/press-releases/2008/10/24/pr300.html |url-status=live }}</ref><ref name=metrics2009>{{Cite news |url=http://www.pancanal.com/eng/pr/press-releases/2009/10/30/pr366.html |title=News{{snd}}PanCanal.com; Panama Canal Authority Announces Fiscal Year 2009 Metrics |publisher=Panama Canal Authority |date=30 October 2009 |access-date=9 July 2010 |archive-date=11 June 2011 |archive-url=https://web.archive.org/web/20110611095934/http://www.pancanal.com/eng/pr/press-releases/2009/10/30/pr366.html |url-status=live }}</ref> An official accident is one in which a formal investigation is requested and conducted.

Increasing volumes of imports from Asia, which previously landed on US West Coast ports, are now passing through the canal to the American East Coast.<ref>{{Cite news |url=http://www.colliers.com/Content/Attachments/Corporate/Services/NewYorkTimes112204.htm |archive-url=https://web.archive.org/web/20050307191412/http://colliers.com/Content/Attachments/Corporate/Services/NewYorkTimes112204.htm |archive-date=7 March 2005 |title=New York Port Hums Again, With Asian Trade |first=Eric |last=Lipton |work=[[The New York Times]] |date=22 November 2004 }}</ref> In 2007, the total number of ocean-going transits increased from 11,725 in 2003 to 13,233, falling to 12,855 in 2009. The canal's fiscal year runs from October to September.<ref name="annualreport2009">{{cite web |url=http://www.pancanal.com/eng/general/reporte-anual/2009/pdf/InformePDFingles.pdf |title=ACP 2009 Annual Report |publisher=Panama Canal Authority |year=2009 |access-date=9 July 2010 |archive-date=3 November 2011 |archive-url=https://web.archive.org/web/20111103054620/http://www.pancanal.com/eng/general/reporte-anual/2009/pdf/InformePDFingles.pdf |url-status=live }}</ref> This has been coupled with a steady rise in average ship size and in the numbers of Panamax vessels passing through the canal. The total tonnage carried rose from 227.9 million [[tonnage|PC/UMS tons]] in fiscal year 1999 to a then record high of 312.9 million tons in 2007, and falling to 299.1 million tons in 2009.<ref name="acptraffic" /><ref name="annualreport2009" /> Tonnage for fiscal 2013, 2014 and 2015 was 320.6, 326.8 and 340.8 million PC/UMS tons, carried on 13,660, 13,481 and 13,874 transits respectively.<ref>{{cite web |url=http://www.pancanal.com/eng/op/transit-stats/2015/Table01.pdf |title=Panama Canal Traffic{{snd}}Fiscal Years 2013 through 2015 |publisher=Panama Canal Authority |archive-url=https://web.archive.org/web/20160719152021/http://www.pancanal.com/eng/op/transit-stats/2015/Table01.pdf |archive-date=19 July 2016 }}</ref>
[[File:Gatun locks showing the "mule" locomotives at work.jpg|thumb|Gatun locks showing the [[Panama Canal locks#Mules|"mule" locomotives]] at work]]
[[File:Mule in the Miraflores Locks.JPG|thumb|''Mule'' in the Miraflores Locks]]

In the first decade after the transfer to Panamanian control, the [[Panama Canal Authority]] (ACP) invested nearly US$1 billion in widening and modernizing the canal, with the aim of increasing capacity by 20 percent.<ref>{{cite news |url=http://www.cnn.com/SPECIALS/1999/panama.canal/stories/operation/ |title=Transfer heavy on symbolism, light on change |first=Steve |last=Nettleton |publisher=CNN Interactive |year=2000 |archive-url=https://web.archive.org/web/20081218155312/http://www.cnn.com/SPECIALS/1999/panama.canal/stories/operation/ |archive-date=18 December 2008 }}</ref> The ACP cites a number of major improvements, including the widening and straightening of the Culebra Cut to reduce restrictions on passing vessels, the deepening of the navigational channel in Gatun Lake to reduce draft restrictions and improve water supply, and the deepening of the Atlantic and Pacific entrances to the canal.<ref>{{cite web |title=9 Facts about the Panama Canal Expansion – Infographic |url=http://www.mercatrade.com/blog/9-facts-about-the-panama-canal-expansion/ |publisher=Mercatrade |access-date=28 October 2014 |archive-url=https://web.archive.org/web/20141020083517/http://www.mercatrade.com/blog/9-facts-about-the-panama-canal-expansion/ |archive-date=20 October 2014 }}</ref>

This is supported by new equipment, such as a new drill barge and suction dredger, and an increase of the [[Tugboat|tug boat]] fleet by 20 percent. Improvements have been made to the canal's operating machinery, including an increased and improved tug locomotive fleet, the replacement of more than {{cvt|16|km|0}} of locomotive track, and new lock machinery controls. Improvements have been made to the traffic management system to allow more efficient control over ships in the canal.<ref>{{cite web |title=9 Facts about the Panama Canal Expansion – Infographic |url=http://www.mercatrade.com/blog/9-facts-about-the-panama-canal-expansion/ |publisher=Mercatrade |access-date=28 October 2014 |archive-url=https://web.archive.org/web/20141020083517/http://www.mercatrade.com/blog/9-facts-about-the-panama-canal-expansion/ |archive-date=20 October 2014 }}</ref>

In December 2010, record-breaking rains caused a 17-hour closure of the canal. This was the first closure since the [[US invasion of Panama]] in 1989.<ref>{{cite news |url=https://www.bbc.co.uk/news/world-latin-america-11953800 |access-date=13 December 2010 |title=Panama Canal reopens after temporary closure |work=BBC News |date=9 December 2010 |archive-date=17 October 2018 |archive-url=https://web.archive.org/web/20181017113304/https://www.bbc.co.uk/news/world-latin-america-11953800 |url-status=live }}</ref><ref>{{cite web |url=https://www.google.com/hostednews/ukpress/article/ALeqM5izSSaRRPlqlKrEgImAAMgZtqhsdw?docId=N0087151292030740345A |access-date=12 December 2010 |title=The Press Association: Panama flooding displaces thousands |date=12 December 2010}}{{dead link|date=June 2024|bot=medic}}{{cbignore|bot=medic }}</ref> The rains also caused an access road to the Centenario Bridge to collapse.<ref>{{cite web |url=http://laestrella.com.pa/mensual/2010/12/12/contenido/18225705.asp |access-date=13 December 2010 |title=NOTICIAS PANAMÁ{{snd}}PERIÓDICO LA ESTRELLA ONLINE: Gobierno abrirá parcialmente Puente Centenario; Corredores serán gratis [Al Minuto] |date=13 December 2010 |archive-url=https://web.archive.org/web/20101216063033/http://www.laestrella.com.pa/mensual/2010/12/12/contenido/18225705.asp |archive-date=16 December 2010 }}</ref><ref>{{cite web |url=http://www.digtriad.com/news/local/story.aspx?storyid=151684 |archive-url=https://web.archive.org/web/20130501024710/http://www.digtriad.com/news/local/story.aspx?storyid=151684 |archive-date=1 May 2013 |access-date=8 July 2012 |title=Rain Causes Panama Canal Bridge To Collapse |publisher=digtriad.com |date=12 December 2010 }}</ref><ref>{{cite web |url=http://english.cri.cn/6966/2010/12/11/2021s609648.htm |access-date=13 December 2010 |title=Entrance to Panama Canal Bridge Closed due to Rain Damage |date=13 December 2010 |archive-date=15 December 2010 |archive-url=https://web.archive.org/web/20101215200209/http://english.cri.cn/6966/2010/12/11/2021s609648.htm }}</ref><ref>{{cite web |url=http://www.newsroompanama.com/panama/2073-aftermath-of-panama-flooding-hits-transport-and-finances-rain-continues.html |access-date=13 December 2010 |title=Aftermath of Panama flooding hits transport and finances{{snd}}rain continues |date=13 December 2010 |archive-url=https://web.archive.org/web/20101216060538/http://www.newsroompanama.com/panama/2073-aftermath-of-panama-flooding-hits-transport-and-finances-rain-continues.html |archive-date=16 December 2010 }}</ref>

===Capacity===
[[File:Vessel draft restrictions on the Panama Canal by locks.webp|thumb|Vessel draft restrictions on the Panama Canal by locks 2022–2024
{{legend-line|#4A7772 solid 3px|[[Panamax#Neopanamax|Neopanamax]]}}
{{legend-line|#2A3066 dashed 3px|[[Panamax]]}}
]]
The canal handles more vessel traffic than had ever been envisioned by its builders. In 1934, it was estimated that the maximum capacity of the canal would be around 80 million tons per year.<ref>{{Cite book |url=http://www.czimages.com/CZMemories/thirdlocks/tlpage3.htm |title=The Land Divided{{snd}}A History of the Panama Canal and other Isthmian Canal Projects |first=Gerstle |last=Mack |year=1944 |access-date=7 January 2006 |archive-date=1 May 2013 |archive-url=https://web.archive.org/web/20130501112749/http://www.czimages.com/CZMemories/thirdlocks/tlpage3.htm |url-status=live }}</ref> In 2015, canal traffic  reached 340.8 million tons of shipping.

To improve capacity, a number of improvements have been made to maximize the use of the locking system:<ref name="3rdLockProposal">
{{cite web |url=http://www.acp.gob.pa/eng/plan/documentos/propuesta/acp-expansion-proposal.pdf |title=Proposal for the Expansion of the Panama Canal |date=24 April 2006 |publisher=Panama Canal Authority |archive-url=https://web.archive.org/web/20110721055325/http://www.acp.gob.pa/eng/plan/documentos/propuesta/acp-expansion-proposal.pdf |archive-date=21 July 2011 |page=45}}
</ref>
* Implementation of an enhanced locks lighting system;
* Construction of two tie-up stations in Culebra Cut;
* Widening Culebra Cut from {{cvt|192|to|218|m|ft|sp=us}};
* Improvements to the tugboat fleet;
* Implementation of the carousel lockage system in Gatun locks;
* Development of an improved vessel scheduling system;
* Deepening of Gatun Lake navigational channels from {{cvt|10.4|to|11.3|m|ft|sp=us}} PLD;
* Modification of all locks structures to allow an additional draft of about {{cvt|1|ft|m|sp=us|order=flip}};
* Deepening of the Pacific and Atlantic entrances;
* Construction of a new spillway in Gatun, for flood control.
These improvements enlarged the capacity from 300 million PCUMS in 2008, to 340 PCUMS in 2012. These improvements were started before the new locks project, and are complementary to it.

===Competition===
[[File:Panama_canal_lock_sizes.png|upright=1.6|thumb|Maximum ship sizes for the Panama and Suez canals<ref>{{cite web |title=Panama Canal expansion will allow transit of larger ships with greater volumes |date=17 September 2014 |url=https://www.eia.gov/todayinenergy/detail.php?id=18011 |work=Today in Energy |publisher=[[Energy Information Administration|EIA]] |access-date=25 April 2019 |archive-date=25 April 2019 |archive-url=https://web.archive.org/web/20190425190436/https://www.eia.gov/todayinenergy/detail.php%3Fid%3D18011 |url-status=live }}</ref>]]
The canal faces increasing competition from other quarters. Because canal tolls have risen as ships have become larger, some critics<ref>{{Cite book |url=http://www.thepanamanews.com/pn/v_13/issue_06/business_03.html |title=Shipping industry complains about PanCanal toll hikes |first=Eric |last=Jackson |year=2007 |archive-url=https://web.archive.org/web/20100418214654/http://www.thepanamanews.com/pn/v_13/issue_06/business_03.html |archive-date=18 April 2010 }}</ref> have suggested that the Suez Canal is now a viable alternative for cargo between Asia and the US East Coast.<ref>{{cite web |url=https://www.bloomberg.com/news/2013-03-11/maersk-line-to-dump-panama-canal-for-suez-as-ships-get-bigger.html |title=Maersk Line to Dump Panama Canal for Suez as Ships Get Bigger |website=[[Bloomberg News]] |date=11 May 2013 |access-date=24 December 2013 |archive-date=10 March 2021 |archive-url=https://web.archive.org/web/20210310235704/http://www.bloomberg.com/news/2013-03-11/maersk-line-to-dump-panama-canal-for-suez-as-ships-get-bigger.html |url-status=live }}</ref> The Panama Canal, however, continues to serve more than 144 of the world's trade routes and the majority of canal traffic comes from the "all-water route" from Asia to the US East and Gulf Coasts.<ref>{{Cite web |title=Panama_Canal_Phase_I_Report_-_20Nov2013.docx |url=https://www.govinfo.gov/content/pkg/GOVPUB-TD11-PURL-gpo49499/pdf/GOVPUB-TD11-PURL-gpo49499.pdf |url-status=live |archive-url=https://web.archive.org/web/20240817093259/https://www.govinfo.gov/content/pkg/GOVPUB-TD11-PURL-gpo49499/pdf/GOVPUB-TD11-PURL-gpo49499.pdf |archive-date=17 August 2024 |access-date=13 December 2023}}</ref>

An alternative route through [[Nicaragua]] and [[Lake Nicaragua]] has been proposed. On 15 June 2013, Nicaragua awarded the Hong Kong-based [[HKND Group]] a 50-year concession to develop a [[Nicaragua Canal|canal through the country]].<ref>{{cite news |last=De Cordoba |first=Jose |title=Nicaragua Revives Its Canal Dream |url=https://online.wsj.com/news/articles/SB10001424127887323734304578543432234604100 |newspaper=Wall Street Journal |date=13 June 2013 |access-date=10 January 2022 |archive-date=11 November 2013 |archive-url=https://web.archive.org/web/20131111022158/http://online.wsj.com/news/articles/SB10001424127887323734304578543432234604100 |url-status=live }}</ref> In February 2018, analysts widely viewed the project as defunct,<ref name=cancellation>{{cite news |url=https://www.elfinancierocr.com/economia-y-politica/incertidumbres-financieras-desvanecen-sueno-de/7HFF44CY3RBVVE7BR3YRKJ3XZY/story/ |title=Incertidumbres financieras desvanecen sueño de canal en Nicaragua |website=El Financiero |agency=AFP |date=21 February 2018 |language=Spanish |access-date=16 April 2023 |archive-date=21 February 2018 |archive-url=https://web.archive.org/web/20180221193924/https://www.elfinancierocr.com/economia-y-politica/incertidumbres-financieras-desvanecen-sueno-de/7HFF44CY3RBVVE7BR3YRKJ3XZY/story/ |url-status=live }}</ref><ref name=Interest>{{cite news |first=Seth |last=Cropsey |date=9 April 2018 |title=China sets its sights on South America |website=The American Interest |url=https://www.the-american-interest.com/2018/04/09/china-sets-sights-south-america/ |quote=China has abandoned its attempts to construct a Nicaraguan Canal to compete with its Panamanian counterpart. |access-date=10 April 2023 |archive-date=24 April 2018 |archive-url=https://web.archive.org/web/20180424072046/https://www.the-american-interest.com/2018/04/09/china-sets-sights-south-america/ |url-status=live }}</ref><ref>{{cite news |first=Beverly |last=Goldberg |website=Open Democracy |date=27 August 2018 |title=Is the Nicaraguan mega-canal failure good news for indigenous communities? |url=https://www.opendemocracy.net/democraciaabierta/beverly-goldberg/is-nicaraguan-mega-canal-failure-good-news-for-indigenous-communi |access-date=10 April 2023 |archive-date=28 August 2018 |archive-url=https://web.archive.org/web/20180828071540/https://www.opendemocracy.net/democraciaabierta/beverly-goldberg/is-nicaraguan-mega-canal-failure-good-news-for-indigenous-communi }}</ref> though the head of the project insisted work was on-going. In April 2018 HKND Group closed its offices, leaving no forwarding address or telephone numbers to be reached.<ref name="closing">{{Cite news |date=26 April 2018 |title=Ex-Billionaire Abandons Office in Prime Hong Kong Tower |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2018-04-26/nicaragua-canal-builder-abandons-office-in-prime-hong-kong-tower |access-date=1 May 2023 |archive-date=13 April 2024 |archive-url=https://web.archive.org/web/20240413002243/https://www.bloomberg.com/news/articles/2018-04-26/nicaragua-canal-builder-abandons-office-in-prime-hong-kong-tower |url-status=live }}</ref>

The increasing rate of melting of ice in the Arctic Ocean has led to speculation that the [[Northwest Passage]] or [[Arctic Bridge]] may become viable for commercial shipping. This route would save {{cvt|9,300|km|mi}} on the route from Asia to Europe compared with the Panama Canal, possibly leading to a diversion of some traffic to that route. However, such a route is beset by unresolved territorial issues and would still hold significant problems owing to ice.<ref>{{cite web |url=http://www.washingtontimes.com/news/2005/jun/12/20050612-123835-3711r/ |title=Northwest Passage redux |first=Levon |last=Sevunts |work=The Washington Times |date=12 June 2005 |access-date=20 April 2009 |archive-date=26 December 2008 |archive-url=https://web.archive.org/web/20081226220945/http://www.washingtontimes.com/news/2005/jun/12/20050612-123835-3711r/ |url-status=live}} See also: {{cite web |url=http://www.defensenews.com/story.php?F=1429085&C=america |title=Conservative Leader Harper Asserts Canada's Arctic Claims |first=Michel |last=Comte |publisher=DefenceNews.com (Agence France-Presse) |date=22 December 2005 |access-date=23 February 2006}}{{Dead link|date=August 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

=== Trade and Economic Impact of the Panama Canal ===
The Panama Canal has been a vital conduit for global trade since its completion in 1914. By linking the [[Atlantic Ocean]] and [[Pacific Ocean]], the canal has significantly reduced maritime travel time and costs, facilitating economic growth and international commerce. Over the past century, the canal has evolved through expansions and policy changes, further strengthening its role in global trade networks.

==== Expansion and Increased Trade Capacity ====
The expansion of the Panama Canal, completed in 2016,<ref>{{Cite web |title=Panama Canal |url=http://www.pancanal.com/}}</ref> allowed for the transit of larger Neopanamax ships, nearly tripling its previous capacity. This development had a profound impact on global trade routes, particularly for container ships, [[liquefied natural gas]] (LNG) carriers, and [[Bulk cargo|bulk commodities]].<ref name=":0">{{Cite journal |last=Chantziara |first=Thalia |date=1988 |title=Panama's Canal: The US Departure and Panama's New Era |url=http://www.jstor.org/stable/42763996 |journal=Harvard International Review |volume=20 |issue=3 |pages=14–16 |jstor=42763996}}</ref> By accommodating larger vessels, the canal has helped reduce transportation costs for major exporters such as the [[United States]], [[China]], and [[Japan]].<ref name=":2">{{cite journal | jstor=2128198 | last1=Tate | first1=Mercer D. | title=The Panama Canal and Political Partnership | journal=The Journal of Politics | date=1963 | volume=25 | issue=1 | pages=119–138 | doi=10.2307/2128198 }}</ref> Additionally, it has shifted trade dynamics by increasing the viability of East Coast ports in the United States, which have experienced higher traffic as a result of the expansion.<ref name=":3">{{Cite journal |last=United |first=States |date=1914 |title=Canal treaties. Executive documents presented to the United States Senate, together with proceedings by the Senate theron relative to the Panama Canal. |url=https://catalog.hathitrust.org/Record/100346769/Home |journal=Washington, Govt. Print. Off.|series=Treaties, etc }}</ref>

==== Strategic Importance in Global Commerce ====
As one of the world’s most critical maritime chokepoints, the Panama Canal plays a central role in global commerce. Over 5% of world trade passes through the canal annually, with key commodities including grain, [[Petroleum product|petroleum products]], and manufactured goods.<ref name=":0" /> The canal is particularly essential for trade between Asia and the Americas, serving as a crucial transit route for automobiles, consumer electronics, and [[Raw material|raw materials]].<ref name=":2" /> According to historian Marixa Lasso, the construction of the canal not only altered trade patterns but also erased entire communities and reshaped the economic geography of the region.<ref name=":3" />

==== Economic Impact on Panama and the Region ====
The economic benefits of the canal extend beyond global trade, significantly impacting the [[Economy of Panama|Panamanian economy]]. The [[Panama Canal Authority]] (ACP) generates substantial revenue through tolls and fees, contributing to Panama’s GDP growth and infrastructure development.<ref name=":0" /> Since the canal’s transfer from the United States to [[Panama]] in 1999, revenues have been reinvested into national development projects, including ports, logistics hubs, and free trade zones.<ref name=":2" />  Moreover, the canal's expansion has bolstered employment and stimulated investment in surrounding economic zones.<ref name=":3" />

==== Challenges and Future Developments ====
Despite its success, the Panama Canal faces challenges, including [[climate change]], [[Water scarcity|water shortages]], and competition from alternative trade routes such as the [[Arctic shipping routes|Arctic shipping]] lanes and the [[Suez Canal]].<ref name=":0" /> Periodic droughts have raised concerns about the canal’s long-term water availability, prompting discussions on sustainable water management solutions.<ref name=":2" /> Future investments in technology, such as automated navigation systems, and potential further expansions could enhance the canal’s efficiency and maintain its relevance in global trade.<ref name=":3" />

===Water issues===
[[File:Water level at Gatún Lake from January 1965 through August 2024 (53819777901).png|thumb|upright=1.6|The water level at Gatún Lake from January 1965 to August 2024]]
Gatun Lake is filled with rainwater, and the lake accumulates excess water during wet months. For the old locks, water is lost to the oceans at a rate of {{convert|101,000|m3|e6usgal acre-foot|sigfig=3|abbr=unit}} per downward lock movement.<ref name="PCA14">{{cite web |title=Physical characteristics of the waterway |url=https://pancanal.com/eng/noticiero/canal-faqs/physical/14.html |publisher=Panama Canal Authority |access-date=26 August 2023 |archive-url=https://web.archive.org/web/20011014101214fw_/http://www.pancanal.com/eng/noticiero/canal-faqs/physical/14.html |archive-date=14 October 2001 |date=2001 |quote="How much water is required to fill a lock chamber? Each lock chamber requires 101,000 cubic meters of water. An average of 52 million gallons of fresh water are used." }}</ref> The ship's submerged volume is not relevant to this amount of water.

During the [[dry season]], when there is less rainfall, there is also a shortage of water in Gatun Lake.<ref>{{Cite news |url=https://www.nytimes.com/2019/05/17/climate/drought-water-shortage-panama-canal.html |title=What Panama's Worst Drought Means for Its Canal's Future |last=Fountain |first=Henry |date=17 May 2019 |work=The New York Times |access-date=2 January 2020 |language=en-US |issn=0362-4331 |archive-date=2 January 2020 |archive-url=https://web.archive.org/web/20200102175814/https://www.nytimes.com/2019/05/17/climate/drought-water-shortage-panama-canal.html |url-status=live }}</ref>

As a signatory to the 2000 [[United Nations Global Compact]] and member of the World Business Council for Sustainable Development, the ACP developed an environmentally and socially sustainable program for expansion, which protects the aquatic and terrestrial resources of the canal watershed. The expansion uses three water-saving basins at each new lock, diminishing water loss. It also preserves freshwater resources along the waterway by reusing 60 percent of water from the basins in the locks in each transit.<ref>{{Cite journal |last1=Alarcón |first1=Luis F. |last2=Ashley |first2=David B. |last3=Sucre de Hanily |first3=Angelique |author4-link=Keith R. Molenaar |last4=Molenaar |first4=Keith R. |last5=Ungo |first5=Ricardo |date=October 2011 |title=Risk Planning and Management for the Panama Canal Expansion Program |journal=Journal of Construction Engineering and Management |volume=137 |issue=10 |pages=762–771 |doi=10.1061/(ASCE)CO.1943-7862.0000317 }}</ref>

The mean sea level at the Pacific side is about {{cvt|20|cm|in|0}} higher than that of the Atlantic side due to differences in ocean conditions such as water density and weather.<ref>{{Cite web |title=Frequently Asked Questions |url=https://psmsl.org/train_and_info/faqs/ |access-date=1 May 2023 |website=psmsl.org |archive-date=18 April 2023 |archive-url=https://web.archive.org/web/20230418112516/https://psmsl.org/train_and_info/faqs/ |url-status=live }}</ref>

The 2015–2016 fiscal year was one of the driest periods on record, restricting ships passage;<ref name="wp20230824">{{Cite news |last=Sheridan |first=Mary Beth |date=24 August 2023 |title=Traffic jam at Panama Canal as water level plummets |language=en-US |newspaper=Washington Post |url=https://www.washingtonpost.com/world/2023/08/24/panama-canal-ship-backup/ |access-date=25 August 2023 |issn=0190-8286 }}</ref> 2019 was the fifth driest year for 70 years. Temperature rise has also caused an increase in evaporation.<ref name="wired">{{Cite magazine |last=Jocelyn Timperley |date=15 January 2020 |title=The Panama Canal is running out of water |language=en-GB |magazine=Wired UK |url=https://www.wired.co.uk/article/panama-canal-climate-change |access-date=25 August 2023 |issn=1357-0978 |archive-date=17 August 2024 |archive-url=https://web.archive.org/web/20240817093246/https://www.wired.com/story/panama-canal-climate-change/ |url-status=live }}</ref> In normal times, 36 ships can transit the canal each day, but in early December 2023, ships were backing up because only 22 ships per day could transit due to low water levels.<ref>{{Cite web |last=Yerushalmy |first=Jonathan |date=22 December 2023 |title=Changing climate casts a shadow over the future of the Panama Canal – and global trade |url=https://www.theguardian.com/environment/2023/dec/22/changing-climate-casts-a-shadow-over-the-future-of-the-panama-canal-and-global-trade |access-date=22 December 2023 |website=The Guardian |archive-date=17 August 2024 |archive-url=https://web.archive.org/web/20240817093214/https://www.theguardian.com/environment/2023/dec/22/changing-climate-casts-a-shadow-over-the-future-of-the-panama-canal-and-global-trade |url-status=live }}</ref> In January 2024, 24 ships per day were allowed to transit.<ref>{{Cite web |date=15 December 2023 |title=Panama Canal to increase daily transits to 24 starting in January |url=https://pancanal.com/en/panama-canal-to-increase-daily-transits-to-24-starting-in-january/ |access-date=29 December 2023 |website=Panama Canal Authority }}</ref>