back shipping through the Panama Canal,# one of the world's key shipping channels.

And it comes at a time when traffic has# also been disrupted through the Suez Canal,## where commercial shipping has been limited# by the widening Middle East conflict.

Stephanie Sy looks into the problems# for the critical Panama Canal.

STEPHANIE SY: The canal is one# of the most important waterways## in the Western Hemisphere and# typically carries 5 percent the world's maritime trade and 40# percent of U.S. container traffic.

But with water levels below normal, authorities# are only allowing 24 ships to cross a day,## down from 38.

That means more# delays and higher shipping costs.

The Panama Canal Authority's deputy administrator,## Ilya Espino de Marotta,# joins me now for the Panama.

Ms. Marotta, thank you so much# for joining the "NewsHour."

So describe the severity of the situation at the## Panama Canal right now.

You're# operating at a reduced capa 24 ships a day.

Do you expect that volume# to go even lower in coming days and months?

ILYA ESPINO DE MAROTTA, Panama Canal# Deputy Administrator: Hi.

Good afternoon.## Happy to be No, actually, we are forecasting that w beginning of May, when, hopefully, rainy# season starts again.

So we have to reduce## the amount of traffic because we are just# entering the dry season in Panama.

So we## will have no rain whatsoever.

And we had a# very dry season in '23 because El Nino effect.

Now, you saw that all over the world, not only# Panama.

So we were forced to reduce the number## of transits and maintain a 44-foot draft for# our clients not to be impacted too much.

So## we have less loss where we're trying to give# a draft that is still very competitive for the## industry.

And hopefully we will stay at 24 until# rainy season comes back in late April, STEPHANIE SY: What if the rains# don't come back?

You mentioned## the periodic weather pattern# El Nino, but I have also seen## quoted meteorologists that say climate# change has exacerbated a drought there.

Do you really see relief coming with the next## rainy season?

And what if# that relief doesn't come?

ILYA ESPINO DE MAROTTA: Yes, no, we're looking# at NOAA predictions.

And predictions do say## that El Nino is weakening and we're# going into the April/May/June quarter.

We're looking that -- is, we're going to neutral# and maybe, at the end of the year, in other words,## October, November, December, El Nina effect# will come in, which means a lot of rain.

So,## according to the meteorologist forecast# of NOAA, that's the perspective.

So we don't think that we will have a# problem coming rainy season next year.

(CROSSTALK) to adjust either draft or reduce one or two# more transits per day to maintain the lake## until rainy season comes in, if it comes a# little bit later in the -- in that quarter.

STEPHANIE SY: I want to ask# you about long-term planning.

Gatun Lake, which I understand feeds# the Panama Canal, there cities that draw water from that lake.

And# there is this ongoing drought.

Are you in a## place now where you are having to plan for# perhaps an alternative reservoir to make## sure that the canal can stay functional# in years to come, not just this year?

ILYA ESPINO DE MAROTTA: Yes, definitely.

We are have two reservoirs.

We have Alajuela Lake, which# also provides potable water for the population,## and it's a regulatory lake for the Gatun# Lake.

So we have two lakes currently.

And we were able to fill Alajuela Lake to# the maximum.

So let's say potable water## is assured for the population, and that's# how we reduce transit.

But we are looking## at two additional projects to have increased# water-saving measures, and then we're looking## at a new reservoir that will be built on the# western side of the Panama Canal watershed.

We have analyzed the project.

It will provide# water for either 11 to 16 lockages per day,## and that's a project that we hopefully will# be embarking sometime in late '24, early '25.

STEPHANIE SY: Ms. Marotta, tell me what# your level of concern is.

You make it seem## like it's a temporary problem for this# year with the El Nino weather pattern,## and yet there's long-term climate# change concerns and drought concerns.

How do you make sure that the Panama# Canal continues to be sustainable?

ILYA ESPINO DE MAROTTA: Well, we have# experienced dry years before.

2016 was## a dry year.

2019 was a dry year.

2023 has been# dry.

So we can see that there's This has impacted the entire world, not just# Panama, the Rhine River, the Mississippi River,## the Amazon River, Argentina.

So, definitely,# 2023 has been of a big impact.

We follow NOAA.## We are definitely -- we have -- have been# appointed a chief sustainability officer for## the canal to impact not only the canal, but also# worldwide policy to go into carbon neutrality,## to be net zero carbon by 2050, but# not just us, also the industry.

So we are definitely putting in place policies to## help towards a better environment# and reduce the carbon footprint.

STEPHANIE SY: Ilya Espino de Marotta with the# Panama Canal Authority, appreciate you joining us.

ILYA ESPINO DE MAROTTA: My pleasure.