Panama city: The Panama Canal Authority announced a significant reduction in the number of vessels permitted to transit through the canal each day due to low rainfall and concerns over water supplies amid a potentially severe El Nino event. The daily transit slots will be decreased in two stages, beginning with a reduction from 36 to 34 slots starting September 4, and further to 32 slots from September 15.
According to Anadolu Agency, the changes will affect both the older Panamax locks and the larger Neopanamax locks. The Panama Canal Authority (ACP) reported that cumulative rainfall across the canal watershed from May to August was 34% below the historical average, with inflows into the watershed 44% lower than usual. Despite the arrival of the rainy season and the implementation of water-saving measures, further action is deemed necessary to ensure the long-term sustainability of the canal's operations.
Forecasts suggest that the developing El Nino for 2026-27 could become particularly severe, potentially further reducing rainfall and runoff during the remainder of the wet season. The ACP stated that the measures aim to preserve the reliability of canal services, protect water supplies for human consumption, and allow shipping companies adequate time to plan voyages and manage supply-chain operations.
The canal's lock system relies on fresh water from surrounding lakes, with each vessel passage requiring large volumes of water to raise and lower ships between sea level and Gatun Lake. The ACP also postponed previously announced reductions to the maximum permitted draft for vessels using the Neopanamax locks. Monitoring of weather conditions, lake levels, and water inflows will continue, with the possibility of additional operational changes if necessary.
These restrictions come as the global shipping industry faces disruptions from the ongoing conflict in Iran, which has significantly reduced vessel traffic through the Strait of Hormuz, another crucial trade route. By connecting the Atlantic and Pacific Oceans, the Panama Canal is a vital route for international trade, allowing vessels to avoid the extended journey around South America's southern tip.
The waterway experienced similar restrictions during the 2023-24 El Nino, where an extended drought forced the ACP to progressively reduce daily transits and impose draft limits. The latest reductions underscore the importance of advance reservations, with the ACP advising customers that a confirmed booking is essential to secure a specific transit date.