The Panama Canal is experiencing record tariff increases driven by a combination of factors, including the ongoing El Niño weather pattern and geopolitical tensions surrounding conflict with Iran. El Niño is causing reduced water levels in the crucial waterway, limiting the number of ships able to transit. This scarcity directly impacts shipping rates, leading to significant price hikes for companies utilizing the canal. The decreased water levels force weight restrictions on vessels, potentially leading to longer wait times and increased costs. Authorities are implementing measures to conserve water, but the situation is expected to persist. The instability in the region and conflict with Iran further contribute to the heightened demand and increased costs for passage through the canal. These compounded issues are creating significant challenges for global trade and supply chains.