Panama Canal to curb daily ship transits as El Niño dries water levels

The Panama Canal Authority announced that, beginning September 4, daily transits will be capped at 34 vessels, with a further reduction to 32 ships per day from September 15 onward. This restriction responds to anticipated lower water levels as the El Niño phenomenon brings drier conditions to the region. Earlier in the year, officials had indicated no limits would be required, citing water-saving measures from the previous year.

The canal, which carries about 5 percent of global maritime trade and usually accommodates roughly 40 ships each day, has seen an average of 35 transits since June. Limiting traffic is expected to slow international shipping and could increase freight costs. A 2023 drought, also linked to El Niño and climate change, previously forced a 36 percent cut in canal traffic, disrupting supply chains. The waterway relies on freshwater from Gatun Lake, which also supplies drinking water to Panama City, intensifying the need for conservation during droughts.