The cost of shipping goods around the world is expected to increase after authorities announced more cuts to the use of the Panama Canal.

According to BBC News, the Panama Canal Authority says they are experiencing the worst drought in over 70 years with the El Nino weather phenomenon being a contributing factor.

The authority notes that water levels in the reservoir that is the main source of water used in the canal’s lock system, have “continued to decline to unprecedented levels for this time of year.”

As such, starting from November 3rd 2023, booking slots will be cut to 25 per day from an already reduced 31 per day.

BBC News reports that the number will be further reduced over the next three months to 18 slots per day from the start of February 2024.

The Panama Canal reduces the time and distance for ships to travel between the Atlantic and Pacific oceans.

Between 13,000 and 14,000 ships use it annually.