ASK AHAB

OCTOBER 15, 2026

Dear Ahab:

Is it true that El Nino could make water levels at the Panama Canal worse? If so, what can shippers do to avoid getting caught in another capacity constraints?

– Weather Worrier

Dear Weather Worrier: 

Yes. Shippers saw firsthand how weather can disrupt one of the world's most important trade arteries during the Panama Canal drought of 2023, when low water levels forced authorities to reduce daily transits from 38 vessels to just 22. More recently, canal officials have warned that a strengthening El Niño could once again reduce rainfall, lower lake levels, trigger draft restrictions, and potentially lead to further transit reductions.

The good news is that shippers do not have to wait for a crisis before taking action. If another water-level crunch develops, preparation will be the best defense. In other words, if you know weather-related disruptions are a possibility, don't wait for restrictions to be announced. When capacity tightens, the companies that fare best are usually the ones that planned ahead. That means booking early, maintaining flexibility in routing, and developing contingency plans before canal conditions deteriorate.

Perhaps most importantly, work with a logistics expert who has deep carrier relationships. When disruptions hit, experienced partners can often identify creative alternatives, whether that means securing scarce vessel space, shifting cargo to another service, utilizing different gateways, or developing multimodal solutions that keep freight moving.

The bottom line is that while no one can beat Mother Nature, a logistics expert with the right relationships and experience can help minimize the impact that weather-related disruptions can have on the flow of your cargo.

Dear Ahab:

With the demand for AI data centers continuing to grow, and with those facilities requiring large volumes of glycol for cooling, should ensuring a reliable supply of glycol eventually be considered a national security concern?

– Calm and Coolant

Dear Calm and Coolant:

 It may sound surprising, but there is a strong argument that glycol supply deserves more attention as a potential national security issue. Glycol is a critical component in data center cooling systems, as well as in manufacturing, healthcare, and transportation. As AI drives a surge in data center construction, demand for glycol-based cooling solutions is rising right alongside it. Without adequate cooling, data centers can overheat, jeopardizing the systems that store and process the data modern society depends on.

Needless to say, a major supply chain disruption caused by production constraints, transportation bottlenecks, geopolitical tensions, or trade restrictions could affect the availability of a product that plays an increasingly important role in supporting digital infrastructure. That does not mean a glycol shortage is imminent, but it does highlight the need for supply chain resilience around a commodity that is becoming more critical by the day.

That is why working with a knowledgeable logistics expert experienced in shipping glycol matters. Glycol moves best through specialized supply chains that require expertise, strong carrier relationships, and careful planning. Companies that partner with logistics providers who understand the glycol market and maintain contingency plans are often better positioned to navigate disruptions. In a world that is becoming increasingly dependent on AI and digital infrastructure, moving glycol efficiently may become one of the most important jobs in the supply chain.