Panama Canal to reduce daily ship traffic amid worsening El Niño drought
Starting September 3, the Panama Canal Authority will cut the number of vessels allowed through the canal each day due to insufficient rainfall caused by El Niño. The canal handles about 5% of global maritime trade.
The authority that operates the Panama Canal has announced it will reduce the number of ships permitted to cross the waterway each day, citing a severe drought linked to the El Niño weather pattern affecting Central America.
Currently, 36 vessels are allowed through the canal daily. Starting September 3, that number will drop to 34, followed by a further reduction to 32 from September 15. The Panama Canal Authority said the move was prompted by rainfall levels in the canal's watershed coming in lower than forecast.
Why it's happening
The canal relies on rainwater collected in two artificial lakes to function. Officials said the reduced traffic is meant to support the waterway's long-term sustainability. Other water-saving measures have already been introduced, including a lower maximum draft — the depth a vessel sits in the water — for the largest ships.
Central America is currently experiencing a severe drought driven by El Niño, a climate pattern that warms sea surface temperatures in the central and eastern equatorial Pacific, triggering shifts in wind patterns, atmospheric pressure and rainfall worldwide. El Niño typically recurs every two to seven years, and this year's episode is shaping up to be one of the strongest ever recorded.
On Wednesday, Honduras placed 80 percent of its territory under a drought alert.
Global trade impact
The Panama Canal is a critical artery for global shipping, handling roughly 5 percent of world maritime trade and about 40 percent of US container traffic. The reduced daily capacity could lead to delays and higher costs for shipping companies, with potential knock-on effects for supply chains in multiple regions.
