Volume 23 No 1 (2025)
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Navigating Crisis: The Impact of Drought on the Panama Canal and Strategies for Global Supply Chain Resilience
Krishna Chaitanya Raja Hajarath, Jayapal Reddy Vummadi
Abstract
The Panama Canal is a crucial global trade route, providing a strategic link between the Atlantic and Pacific Oceans. However, the canal is facing an increasing threat from prolonged drought conditions, exacerbated by climate change. These droughts have resulted in a reduction of freshwater supply, which is vital for the operation of the canal's locks. The impact of drought on the Panama Canal is far-reaching, affecting global supply chains, international shipping, and trade routes. This research investigates the consequences of drought on the Panama Canal and the broader implications for global supply chain resilience. The study aims to propose strategies to mitigate these effects, focusing on adaptive measures that can help maintain the canal's functionality during crisis situations. By evaluating historical data, current drought patterns, and the impact of water shortages on shipping capacity, the research aims to provide actionable insights for policy makers, industry leaders, and researchers in logistics and supply chain management. The findings highlight the importance of sustainable water management practices and technological innovations to enhance the resilience of global supply chains in the face of climate-induced challenges
Keywords
Panama Canal, Drought, Global Supply Chain, Resilience, Climate Change.
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