SHIPPING traffic in the Panama Canal has witnessed a recent increase following relief from drought conditions, reports London's Financial Times.

Despite its recent alleviation, the Financial Times has reported that water levels yet remain lower than usual.

Ship arrivals in the canal totalled 739 in April, down from 1,026 the previous year. This contrasts with a low of 692 in February, as reported by Marine Traffic, following over six months of disruption.

Water levels in Lake Gatun, the canal's rain-fed reservoir, dropped to record lows in June of last year and remained there until mid-March of this year. Due to these stifling events, the Panama Canal Authority limited movement through the canal, subsequently leading to a build-up of ships awaiting their transit.

Despite drought being the most pressing issue for trade in the region, Panama remains among the world's wettest nations, with water levels are expected to rise by more than two metres in the May to December rainy season.

In 2023, annual rainfall fell by roughly a quarter compared to average levels. Researchers also marked it as Panama's third driest year on record.

Despite these unprecedented lows, the authority's management of the passage prevented the surrounding communities in Panama from suffering more severe consequences than had been felt in previous droughts.

"Restrictions on shipping through the canal ensured Lake Gatun didn't fall to dangerous levels, and people in Panama didn't face water shortages like they did in 2015 and 2016," said Maja Vahlberg, risk consultant at the Red Cross Red Crescent Climate Centre.