Panama Canal backup forces detours for Asia-bound grain ships

Suez Canal transits soar due to drought, threatening higher food costs

20231228N Panama canal

A drought has caused the Panama Canal Authority to restrict passage of container ships. © Reuters

MISA HAMA and RIONA GOMI, Nikkei staff writers

TOKYO -- A severe drought that has cut ship traffic through the Panama Canal is having ripple effects on the global food supply chain, forcing U.S. grain carriers bound for Asia to take lengthy detours through the Suez Canal or around southern Africa.

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