Panama Canal limits daily transits to 34 ships from Sept 3, then 32 from Sept 15, as El Nino-driven drought depletes water supplies

The Panama Canal Authority announced that starting September 3, daily ship transits will be limited to 34 vessels, decreasing to 32 vessels from September 15 due to a severe drought driven by El Niño. This decision comes as rainfall in the canal's watershed has dropped 34% from historical averages, significantly impacting water supplies.¹²³⁵

The canal, which typically accommodates 40 vessels daily, has already seen a reduction in traffic, with an average of 35 transits since June. The Panama Canal is crucial for global trade, handling 5% of maritime traffic and 40% of U.S. container shipments. The Canal Authority stated that the measures are necessary to ensure the long-term sustainability of the waterway amid ongoing drought conditions.

In 2023, the canal experienced a 36% decrease in traffic due to similar drought conditions, leading to significant disruptions in global supply chains. The Canal Authority has implemented various water conservation measures, including lowering the maximum draft for larger ships. As the El Niño phenomenon intensifies, further restrictions on shipping may be considered depending on rainfall in the coming weeks.

The Canal Authority noted that waiting times for ships without reservations will increase, as nine out of ten ships use the canal with a reservation. The main users of the canal include the U.S., China, Japan, Chile, and South Korea.