Maritime traffic through the Strait of Magellan jumped more than 70% both in August and September from year-ago levels as ships diverted from the drought-stricken Panama Canal, Chilean Navy data requested by Bloomberg show.
Sparse rainfall linked to El Niño lowered water levels in the Panama Canal, prompting authorities to restrict crossings. Middle East disruptions have also prompted some operators to avoid the region and likely reroute through the Strait of Magellan, Bloomberg Intelligence analyst Kenneth Loh said.
“The drought in Central America has certainly been the primary culprit,” he said. “That has also compelled many shipowners and operators to pay extraordinarily hefty fees to skip queues.”
The shifts highlight how climate and geopolitical disruptions at major maritime chokepoints are reshaping global trade routes. The surge in traffic, which began in July, also coincided with the winter season, when heavy snowfall in the Andes slowed truck traffic between Chile and Argentina, according to data from the Punta Arenas Maritime Governor’s Office. The upward trend is expected to continue as the cruise season gets underway.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing