Geopolitical tensions in the Strait of Hormuz are forcing shipping companies to pay millions for emergency slots in the Panama Canal. This shift in global trade routes increases fuel consumption and greenhouse gas emissions as vessels take longer paths or use smaller, less efficient ships to move cargo. The situation highlights a critical climate vulnerability, as the Panama Canal relies on freshwater from Gatun Lake. With El Niño threatening water levels, the intersection of security crises and climate instability creates a volatile environment for global supply chains and decarbonization goals.
