PANAMA CITY (AP) A severe drought that began last year has forced authorities to slash ship crossings by 36% in the Panama Canal, one of the worlds most important trade routes.

The new cuts announced Wednesday by authorities in Panama are set to deal an even greater economic blow than previously expected.

Canal administrators now estimate that dipping water levels could cost them between $500 million and $700 million in 2024, compared to previous estimates of $200 million.

One of the most severe droughts to ever hit the Central American nation has stirred chaos in the 50-mile maritime route, causing a traffic jam of boats, casting doubts on the canals reliability for international shipping and raising concerns about its effect on global trade.

On Wednesday, Panama Canal Administrator Ricaurte Vsquez said they would cut daily ship crossings to 24, after already gradually slashing crossings last year from 38 a day in normal times.