
The Panama Canal Authority announced on Thursday it will reduce daily ship crossings starting next month due to a severe drought linked to the El Niño weather phenomenon, which has depleted water supplies critical to the canal’s operations.
From Sept. 3, the number of daily transits will drop from 36 to 34, and from Sept. 15, the limit will tighten further to 32 ships per day, according to the authority. The measures aim to preserve water levels in Gatun Lake, the freshwater reservoir that powers the canal’s lock system, which loses millions of gallons with each passage.
Rainfall from May to August was 34 percent below the historical average for the period, the authority stated, while water inflow into the canal’s basin fell by 44 percent. Forecasts indicate El Niño will persist through 2027, potentially worsening drought conditions. The canal already implemented water-saving measures in 2025, but officials said additional steps were necessary to ensure long-term sustainability.
The authority also delayed planned reductions to the maximum draft for Neopanamax locks, which determine how deeply ships can sit in the water. A draft limit of 14.63 meters, originally set for Aug. 26, was postponed to Sept. 2, and a further reduction to 14.48 meters was rescheduled to Oct. 1. Shallower drafts force vessels to carry less cargo to pass safely.
Separately, shipping data showed traffic through the Strait of Hormuz remained low on Thursday, with only seven commodity vessels crossing the waterway, according to Reuters and Kpler data. Four entered and three exited, with no very large crude carriers recorded. Traffic in the Bab el-Mandeb Strait also slowed, with 23 ships crossing on Thursday compared to 34 on the previous two days.
The Panama Canal handles about 40 percent of U.S. container traffic and 5 percent of global maritime trade, according to AFP. Carriers have begun imposing surcharges of $200 to $1,000 per large container starting mid-September, Freightos reported, costs typically passed to importers and retailers.
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