Dry January as California and Chile wines hit by unseasonal drought in Panama Canal

The UK is one of the largest importers of wine in the world. Photo: Larisa Vdovichenko/Moment RF

Drought in the Panama Canal Experts believe that finding Chilean or Californian wines in supermarkets may be difficult in the new year.

Despite the fact that at this time of year they usually go heavy rains, the Panama Canal Authority has been limiting the number of ships allowed through the 51-mile waterway since the summer after drought began affecting the lock system.

Wines produced in Chile and California are often transported through the canal.< /p>

While several retailers assured The Telegraph that delays would not reduce wine supplies before Christmas, experts have expressed concern that shelves could become even tighter by January.

A satellite image shows a queue of ships waiting to use the Panama Canal

Marco Forgione, Director General of the Institute of Export and Trade; International Trade said Britons could be forced to change their drinking habits as a result.

He said: “The UK could be facing a dry January next month, whether we decide to take part in the annual competition or No.

“Global supply delays could seriously impact supplies of our beloved California Chardonnays and Chilean Merlots that reach us via the Panama Canal.

“With the UK being the world's second largest wine importer, the second largest The largest global market for American wine and the third largest for Chilean wine, the consequences of delays at all stages of the supply chain can be very serious. /> Chile produces 1.2 billion liters of wine per year. Photo: ROBIN BECK/AFP

Mr Forgione added that delays could reduce UK exports to Hong Kong, Singapore and France and called on policymakers to develop a strategy to protect supplies to supermarkets.

Rebecca Palmer, chief buyer at wine retailer Corney & Barrow said: «There may be some issues down the road that we are not aware of at the moment, apparently water levels are low which is slowing down traffic on the canal so we may extend the turnaround time for the work but we will be guided by our forwarders.»

Corney & Barrow said it was not possible to use other routes as the costs involved would be «huge».

iPhone, fruit and vegetables

Other popular consumer products, including iPhones, fruit and vegetables, are also shipped to the UK. via the Panama Canal.

Up to £18 million worth of fruit supplies from Peru could be disrupted by the delays, leading to shortages on supermarket shelves, according to researchers from retail analyst Russell Group.

The number of ships passing through the Panama Canal in the first week of December fell from 238 last year to 167. Photo: LUIS ACOSTA/AFP via Getty Images

Canal authorities currently allow only 22 daily transits through the passage that connects the Atlantic and Pacific oceans, compared with the usual average of 34 to 36. In February, that number is likely to drop further to about 18 ships per day.

An estimated 167 ships crossed the canal in the first week of December this year, compared with 238 during the same period in 2022, according to trade analysts MarineTraffic.

The Panama Canal, which was built in 1914, carries up to £213 billion worth of cargo annually, including 40 percent of all container traffic in the US.

Chile produced 1.2 billion liters of wine last year, two-thirds of which was exported, and the US exported almost 300 million liters of wine, with California accounting for up to 80 percent of the country's wine.

A Department of Business and Trade spokesman said just 0.5 percent of British imports pass through the Panama Canal, and he is working with international partners to develop robust supply chains.

‌The spokesperson added: “We will be publishing a new critical imports and supply chain strategy shortly.”< /p>