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El Nino returns: What it means for global trade and the Panama Canal
El Nino, just two years after the most severe drought in the history of the Panama Canal forced ships to wait for weeks for passage, and triggered multimillion-dollar bidding wars for transit slots. Now El Nino threatens again the rainfall that feeds this waterway. El Nino is strengthening and reservoirs are shrinking. The industry is preparing for another disruption on one of the most important waterways in the world. Some?ships have already taken long detours through Africa. The Panama Canal Authority reversed its previous promise to limit 'passage' as it prepares for an El Nino that is longer than usual. 1. Where does the canal receive its water from? The Panama Canal, unlike the Suez Canal (in Egypt), relies on the use of fresh water for the operation of three sets a locks. This artificial waterway stretches 80 km (50 miles) between the Pacific Ocean and the Atlantic Ocean. Operation depends on two manmade reservoirs: Gatun and Alajuela Lakes. These lakes release millions of liters per transit, allowing ships to be raised and lowered through gravity-fed locks. 2. El Nino and the Panama Canal: Why is it important? The weakened winds can cause the reservoirs to dry up as a result of the warm water in the Pacific Ocean. Samuel Munoz is an associate professor at Northeastern University of Civil and Environmental Engineering. He said that, when reservoirs are low, the authority that controls the canal must reduce the number of ships that it allows to pass through in order to conserve water. This reduction "creates disruptions of the shipping system that ripple throughout the global economy." 3. Why are these water resources vulnerable? The Smithsonian Tropical Research Institute's monitoring system in Panama has been recording some of the highest air temperatures ever since May. May, June, and July all posted record or near-record average monthly temperatures. Steven Paton, the monitor who runs the network, said that rainfall in Panama during this period was below average. He added that some stations report record lows or values near records, especially around the canal. 4. What is the Panama Canal Authority doing? Starting September 4, the Panama Canal Authority will cap daily?transit slots at 34 vessels and reduce that number to 32 by September 15. El Nino is expected to continue, and water levels are predicted to fall further. This could force the authority to tighten up again. The measures are similar to those taken in 2023-24, when drought reduced daily transits down to 22 ships according to official statistics. For the fiscal year 2026 (October to September), the canal recorded an average of 35 to 34 daily transits. 5. What impact does this have on shipping? Panama Canal Authority acknowledged, without providing further details, that some ships that transited the canal recently "paid amounts exceeding one million dollar at auction to meet specific market needs." 6. What are the alternatives? Rohit Rathod is a senior analyst for Vortexa and a senior oil industry analyst. He said that many shippers take the long route around Africa because they don't have long-term slots packages or large auction budgets. He said that so far, in August, about half of the gas carriers headed to Asia chose the Cape of Good Hope instead of the Panama Canal. This is the highest percentage for the past decade. A large gas tanker traveling from Houston to Japan would take about 26 days to pass through the Panama Canal, but it would take 45 days just to go around Cape of Good Hope. 7. What are the long-term options being considered? Panama is considering a longer-term solution: a reservoir at Rio Indio. The Panama Canal Authority claims that this would provide water to more than half of the population and ensure the operation of the canal for the next fifty years. It would also improve conditions for nearby communities. Environmental activists have been instrumental in blocking First Quantum Mining's contract. Some argue that the reservoir is unnecessary and suggest alternatives, such as Lake?Bayano. 8. What is the difference between this El Nino and previous ones? The Climate Prediction Center of the U.S. National Oceanic and Atmospheric Administration issued a forecast last week that El Nino was strengthening. It said there is a greater 90% chance of an "extremely strong" event in the Northern Hemisphere during the fall and winter of 2026-2027. Clarksons Securities stated in a recent research note that "El Nino has now emerged as a major risk" to a sector already struggling with capacity constraints and geopolitical conflicts in the Middle East. (Reporting from Stefanie Eschenbacher, Mexico City; Elida Moreno, Panama City; editing by Emily Green and Sanjeev miglani).
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A man armed with a sword injured several people in a Swedish high school
Local authorities reported that a man was arrested after he allegedly injured several people with a saber at a Swedish high-school on Friday. The incident triggered a massive response by emergency services. The incident happened on Friday at Brinell High School, which has around 450 students between 16 and 20 years old in Fagersta. A police spokesperson said: "We received a report at 1406 (or 1206 GMT) of suspected violent death and sent all the resources we could to the school." A spokesperson stated that one person was taken into custody and there was no danger to the public. "IT FEELS UNTREAL" Some students were attending their first day of senior high school. Madelene Jansson was interviewed by the local newspaper Fagersta-posten outside of the school where her daughter attended. "I got a message first from her saying that someone had been stabbed, and that the police were en route. It all just 'went off'. She told the newspaper that it felt unreal. After the attack with the sword, several other schools and buildings in Fagersta also went into lockdown. Vastmanland County Authority said that it has adopted a high alert status. "We have adopted a high alert status in order to marshal resources and get a clearer picture of the situation. This will allow us to make the best decisions possible," Jonas Cederberg, Director of Health and Medical Services, said in a press release. The daily Expressen reported that police shot the suspect but they could not confirm this immediately. This incident occurs a year after the worst mass shooting ever in Swedish history, which took place in Orebro in central Sweden. A gunman shot 10 people before turning his weapon on himself. Justice Minister Gunnar strommer stated in a press release that the Swedish government was in contact with police after Friday's incident. Swedish Prime Minister Ulf Kritersson stated that the police were working on the case intensively and asked for everyone to leave them alone and allow the emergency services to work. In a social media post, he wrote: "Our thoughts are for all those affected." Magdalena Andersson of the Social Democrats, who leads a centre-left coalition that is leading in polls ahead next month's elections, stated, "All of Sweden stands with Fagersta during this difficult time."
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Dutch regulator fines Uber 966 million dollars for automating driver terminations, shows document
According to a decision reviewed on August 17, the Dutch Data Protection Authority (AP), has fined Uber EUR825,000,000 ($966,000,000) for deactivating drivers accounts using automated systems without properly informing them. The fine would be the second largest ever under Europe's General Data Protection Regulation. It is behind the EUR1.2 billion fine that Ireland imposed in 2023 on Meta for illegally transferring the data of?European Facebook Users to the United States. Meta has appealed the fine. Uber also said that it would appeal. "We strongly oppose this?decision, and the disproportionate fine," said a company spokesperson. The spokesperson added that the company takes driver's rights seriously. Its current policies include human reviews as well as opportunities for drivers to dispute suspensions of platform. The AP confirmed that the decision was made, but couldn't comment on it further. In recent years, European regulators have fined large U.S. technology companies billions of Euros for violating privacy, competition and digital market regulations. Meta, Google and Apple all faced multiple fines, though the headline fines were often reduced or reversed following years-long appeals. U.S. president Donald Trump has criticised such fines and in April a senior U.S. State Department Official said that they are the "biggest source of friction" between U.S. and EU economic relations. GDPR bans decisions that are solely based on computer algorithms when they impact people's lives. Such decisions need a meaningful human review, and the ability to challenge a ruling. The decision stated that "the AP determined that Uber violated drivers' right, specifically the driver's right to not be subjected to automated decision making that has...significant implications." The decision stated that Uber had also violated the rights to information. It said the agency considered this a serious issue worthy of a large fine. This case concerns European incidents that occurred in 2020 to 2022. It was a French complaint which sparked the initial investigation. The Dutch regulator handled the case because Uber's European HQ is in the Netherlands. Uber temporarily suspended the accounts of drivers suspected?of fraudulent activity, such as when Uber's systems determined that drivers took unnecessary detours in order to inflate prices?or accepted trip without intending them to be completed. Uber stated that such suspensions are usually brief and they do not deactivate accounts permanently without human review. The AP reported that drivers with a?low rating were sometimes permanently deactivated using a?computer. Uber denied this, saying that it had never automated decisions about permanent deactivation. The company stated that one of the reasons it finds the fine to be disproportionate is because only a few drivers were affected. In Europe, 126 drivers had been deactivated due to low customer ratings by 2021.
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Why does Trump mention the Keystone XL pipeline?
This week, during the U.S. Canada trade talks, a social media post from U.S. president Donald Trump stating that the Keystone XL pipeline "may 'be awoken?from the grave" caught the attention of many. Here's a look back at that project, which ran through parts of Canada as well as the United States. Also included are details about a new oil pipeline proposal that takes a slightly different path. What is Keystone XL? Keystone XL is a crude pipeline that was proposed. It would have been 1,181 km long and carried approximately 830,000 barrels of oil per day from the oil sands in northern Alberta, to the U.S. major storage hub of Cushing, Oklahoma. The oil would then be sent to Gulf Coast refineries. Trump revived the project during his first term after it was rejected by President Barack Obama. The pipeline, which had begun construction, was never completed because U.S. president Joe Biden revoked the key permit in 2021 for the U.S. stretch of the project. WHAT COMPANIES ARE PARTICIPATING? When the Keystone XL pipeline was cancelled, TC Energy in Canada lost billions. South Bow spun off the crude pipelines division of TC Energy to focus on natural gas. Trump, however, has been vocal in his desire to see Keystone expanded. Canada is the fourth largest oil exporter in the world. It sends over 90% of its crude production to the U.S. and many U.S. refining plants are dependent on Canadian heavy oils. South Bow had previously stated that it was "moving on" from the Keystone Project, but forecasts of increased Canadian oil production prompted the company to propose earlier this year a new project called Prairie Connector. The ?550,000-barrel-per-day project, which South Bow is working on in partnership with U.S. company Bridger Pipeline, would run from Alberta to Wyoming and would use some of the Keystone XL pipe that ?had been installed on the Canadian side of the border before that project was canceled. South Bow has said that it will decide in 2027 whether to proceed with Prairie Connector. The CEO of the company has stated that proof is needed before moving forward to ensure that a U.S. Presidential permit "is durable". South Bow has declined to comment about Trump's latest posts. What role does the 'PIPELINE' play in trade talks? Mark Carney, the Canadian Prime Minister, raised the possibility of a revival of the pipeline project in trade talks with Trump. He referred to it as an area of possible?cooperation? between the two nations. The trade talks stalled then for several months. Trump posted a Keystone meme shortly after announcing on Tuesday evening that he had granted Canada a 3-day reprieve from more tariffs. He posted it again before a midnight deadline for a new deal. (Reporting and editing by Caroline Stauffer in Calgary, and Sanjeev Mikleni)
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Delta and Aeromexico win US Court battle to retain joint venture
The U.S. Court of Appeals on Thursday overturned the Trump Administration's order from September 2025 that was intended to force Aeromexico and Delta?Airlines to dissolve a joint venture. Last year, the?airlines?sued to stop the U.S. Department of Transportation's order to repeal a nearly 10-year-old joint-venture that allowed the carriers to coordinate the scheduling, pricing, and capacity of U.S. - Mexico flights. The USDOT order is part of a series of U.S. measures aimed at Mexico’s aviation sector due to competition concerns. Last year, a court halted the order pending legal challenges. The 11th Circuit U.S. Court of Appeals stated that USDOT "didn't reasonably explain why they conducted a much more limited market study in this case than in the past, or if it imposed a requirement to approve the joint venture compared to what it required of'similar joint ventures approved in Japan. Delta, Aeromexico, and the U.S. The Justice and Transportation departments referred to the joint venture as "legalized collusion," which controls "almost 60 percent of operations at the 4th-largest gateway international to and from the United States," in reference to Mexico City flights. Delta, with a 20% stake, argued President Donald Trump held Aeromexico to a higher standard than other joint ventures such as United Airlines or Japan's ANA. The court said that USDOT's arbitrary and capricious action was because it did not apply the same standards to Delta and U.S.Japan joint-venture applicants. USDOT has taken separate action to revoke approval of 13 routes for Mexican carriers in the U.S., and cancel all combined passenger and cargo flights from Mexico City's Felipe Angeles International Airport. Transportation Secretary Sean Duffy stated last year that Mexico "illegally cancelled and frozen U.S. carrier flight for three years without consequence."
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Panama Canal will cap daily transits in anticipation of severe El Nino
It announced on Thursday that the Panama Canal Authority will limit daily transits starting in early September, as it prepares for an El Nino season expected to reduce water levels. This is a reversal of a previous promise not to restrict vessel passage. The new measures will reduce the number of vessels that can pass through the canal each day to 32 by September 15, and to 34 as of Sept. 4. In June 2026 the canal'registered 35 average daily transits, which corresponded to vessel demand. Its capacity was to handle around 40 crossings per day. Canal authorities said in May that they did not plan to restrict vessel passage this year and have already taken water conservation measures starting 2025. According to a?advisory released Thursday, daily capacity at the Neopanamax locks of the canal will be capped as of September 4, while 'capacity in?the older Panamax?locks is limited to 25 slots. The capacity of the Panamax locks will be further reduced on Sept. 15 to 23 slots. As part of its water management strategy, the canal authority has tightened draft restrictions several times.
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At least 40 bodies found after a boat overloaded with passengers capsizes in Nigeria
Local officials and residents reported on Thursday that a?overloaded?boat capsized in Nigeria's northwest Sokoto State. Abdulkadir Yusuf is a manager at the National Inland Waterways Authority. He said that rescue efforts continue after the accident near Gorau, in Goronyo Local Government Area. Yusuf reported that around?40 bodies of children had been discovered. Nasiru Adamsu, a local lawmaker in the 'Sokoto State legislature, confirmed the death toll at 43. A local resident said that the boat was carrying farmers and workers hired to harvest rice. He estimated there were more than 70 people on board when it capsized. One resident reported that there were 57 passengers onboard. Mustapha Umar said that officials would be heading to the scene soon and will provide more information later. Overcrowding and poor maintenance, as well as a lack of enforcement of safety regulations, are all factors that contribute to deadly boat accidents in Nigeria. At least 25 people were killed in January when a leaking boat capsized on the coast of?Yobe State, north-east Nigeria.
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Exporters warn that delays could occur as Ivory Coast prepares for EU cocoa regulations
Ivory Coast’s cocoa regulator claims the world’s largest cocoa producer, Ivory Coast, is ready for new EU anti-deforestation regulations. However exporters and buyers warn that a compliance system set to launch next month could disrupt bean sales and exports. Companies must prove that cocoa and other commodities are not associated with deforestation under the EU's anti-deforestation legislation, which comes into effect at the end December. Yves Brahima Kone, the head of the Coffee and Cocoa Council (CCC), said that digital ID cards would be issued to farmers from September 1, 2026/27. The cards, which were introduced in 2019, are electronic wallets that track cocoa from the farms to the export ports. They also verify the origin of the cocoa and ensure farmers get the guaranteed price. "We are prepared to prove that our cacao is traceable and certified." Kone stated that the 'producer card' is now operational and meets the expectations of chocolate customers. He said that the cards would also allow more than 1 million small-scale farmers to access the banking system?for a first time. According to the'regulator,' Ivory Coast is home to between 1.2 and 1.3 million cocoa producers. INDUSTRY WARNS ABOUT DISRUPTIONS According to industry sources, the launch could cause bottlenecks when the new season starts. We spoke with nine buyers, seven suppliers and four cooperative managers. Sources said that farmers who do not have their cards or have lost them may be unable sell cocoa and this could slow down purchases. The sources also mentioned a shortage in?card terminals. Participants in the industry questioned whether the system could be effective in preventing illegally grown cocoa in protected areas to enter the supply chain, even if administrative problems are resolved. Ivory Coast estimates that cocoa produced in protected forest and national parks represents 15% of the national production. Exporters and European environmental groups estimate the figure at around 30%. Sources said that illegally produced cocoa could still be mixed with legal beans and shipped to Abidjan and San Pedro ports, in part because the output of each farmer can only be estimated and not precisely measured. "We know the benefits of this card, but there will be many problems and chaos during the season. The director of an European export company in Abidjan said that the new European regulation regarding deforestation is too complex to be implemented on the ground. There will be delays throughout the supply chain, including in the purchasing and exporting of goods. "That's unquestionable," said a senior executive of another European export company. Ange Aboa is the reporter. Anait Miridzhanian (Editing), Rob Corey-Boulet, Mark Potter and Anait Miridzhanian
Costs of transmission constraints on the largest US grid will reach $6 billion by 2026
The grid's independent monitor said that congestion costs for PJM, America's largest power grid, jumped 43% in the first half of the year to $6 billion as a result of escalating high-voltage transmission line overloads.
According to Monitoring Analytics' independent market monitor, PJM, transmission bottlenecks during stressful events such as storms are the main cause of the rise in wholesale electricity prices.
According to the report of the Market Monitor, price adjustments for transmission restrictions were $6 billion. This is up from $2.1 in the previous year. The report stated that the $3.9 billion increase in the cost of natural gas fuels was dwarfed by the $2 billion increase.
Costs will eventually be reflected in monthly bills for consumers as the PJM'market' struggles to keep up with the booming demand of power from data centers and electric vehicles, heat pumps and heat pumping stations.
According to the market monitor, PJM "often" assumes that transmission lines are less capable than they actually are and, as a?result, charges penalty fees incorrectly 94% of time.
PJM disagreed with the analysis of the watchdog.
PJM issued a statement saying that the (market monitor) was wrong to claim that PJM reduced transmission line ratings in order to trigger penalties. "PJM was unable to reproduce and/or verify the assertions made by the (market monitor)."
PJM provides electricity to 67 million customers in a region that stretches between Washington,?D.C. and Chicago. PJM's wholesale real-time cost to meet electricity demand during the first half of this year was $29.4 Billion, compared with $20.4 Billion in the first half of 2025.
During the first six months of 2026, the number of 'five-minute periods during which PJM high-voltage transmission lines of 500-kilovolts exceeded or hit operating limits jumped to 8,920 from just 1,865 the previous year. The violations occurred primarily during a winterstorm, according to the market monitor.
According to PJM market data, other impacted?areas include metro Baltimore and Delaware. According to PJM data, other impacted 'areas' include the metro Baltimore area and Delaware.
The report stated that the average real-time wholesale 'electricity cost across PJM increased to $72.54 per Megawatt Hour in the first half 2026 from $51.75 a megawatt hour a previous year, an increase by $20.79 per MWh.
(source: Reuters)