Newsletters

Reuters has reported that the Panama Canal Authority is reducing daily vessel transits as unusually low rainfall and a strengthening El Niño put increasing pressure on the waterway’s freshwater reserves.

Daily transits were capped at 34 vessels from 4 September and will be reduced further to 32 from 15 September. Capacity at the Neopanamax locks is limited to nine daily slots, while the number available through the older Panamax locks will fall to 23.

Rainfall in the canal region between May and August was 34% below the historical average, while inflows into the watershed were 44% below normal. The canal depends on freshwater from its reservoirs to operate its locks, meaning sustained dry conditions may require further restrictions on vessel numbers or maximum draught.

During the severe drought of 2023–2024, daily transits fell to as few as 22 vessels. Lower draught limits also forced ships to reduce their cargo loads, while congestion and competition for available slots led to longer waiting times and higher costs.

The Panama Canal Authority has introduced water-saving measures and says the experience of the previous drought has improved its preparedness. Nevertheless, the expected duration and severity of the 2026–2027 El Niño could lead to additional operational constraints. Freight forwarders will therefore need to monitor carrier announcements, possible surcharges and the availability of alternative routes.