Cargo ships will be forced to queue for days to use the Panama Canal due to a prolonged drought that has reduced water levels in the lake that supplies the key transport route.
In an unprecedented move, the Panama Canal Authority (ACP), which had already cut the number of ships using the Canal to 31 a day, said this will now be reduced 25 on Friday and to just 18 from February of next year.
How low a ship can sit in the water is also being restricted, meaning less cargo can be carried on board.
Economists said the move would push up shipping freight rates around the world with ships set to be stuck for weeks in queues.
El Nino, the southern hemisphere weather pattern that stems from warmer water in the central and eastern Pacific Ocean, is said to be the cause of the drought in Panama, though climate change is also believed to be playing a part.
In a statement, the ACP said that water levels in Gatun Lake, 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".