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Panama Reduces Daily Ship Transits Through Canal Amid El Niño-Driven Drought
PANAMA CITY – The Panama Canal Authority announced a reduction in the number of vessels permitted to transit the iconic canal, citing decreased rainfall linked to the El Niño weather pattern as the primary cause. Despite being in the region’s wet season, the authority plans to cut daily ship passages from 36 to 32 starting September 15, representing an 11% decrease.
This measure aims to preserve water resources critical for both canal operations and human consumption. Officials emphasized that the step is necessary to maintain the long-term sustainability of transit activities, even after implementing other water-saving practices and with seasonal rains now underway.
Meteorologists from Britain’s Met Office have warned that Central America, alongside parts of tropical South America and the western Pacific, faces significant risk of lower-than-average rainfall this wet season due to what may be one of the most intense El Niño events on record.
The reduction in canal capacity is already causing shipping delays, with some vessels waiting weeks to pass through. These hold-ups are raising concerns about potential ripple effects on global supply chains and consumer prices, including fuel and medical supplies. Reports indicate that one container ship paid $4 million to advance in the transit queue.
Freight-forwarding firm Flexport, headquartered in San Francisco, noted that delays on the Pacific side of the canal are the longest in three months-a period marked by backlogs tied to maritime traffic disruptions after the closure of the Strait of Hormuz.
“The ripple effects are significant through supply chains and all the way to consumer prices at stores,” said Benjamin Gedan, senior fellow at the Stimson Center in Washington, highlighting the broader economic impact.
The canal’s lock system depends on fresh water from Lake Gatun to operate its 12 lock chambers, which raise and lower ships across the Isthmus of Panama. In previous El Niño-induced droughts during 2023 and early 2024, water levels in Lake Gatun dropped to historic lows, forcing even deeper restrictions that limited daily transits to just 24 vessels-down from the usual 36.
As El Niño continues to affect the region’s climate, the Panama Canal Authority faces the challenge of balancing vital maritime commerce with environmental sustainability and water resource management.