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Panama Canal to cut daily ship transits from September 3

The Panama Canal Authority said the daily cap will drop to 34 vessels, starting September 3, as drought lowers lake levels that feed the waterway.

Reported · Written up by our desk · Trade & Tariffs

The Panama Canal will reduce the number of ships allowed through each day starting September 3 because of drought linked to El Nino, the Panama Canal Authority said Thursday. The daily vessel limit will fall from 36 to 34 due to low water levels in two artificial lakes that supply the canal.

The authority said the severe drought in Central America is driven by El Nino, a weather pattern that alters winds, atmospheric pressure and rainfall across the region. It added that rainfall from May to August was down 34.0% versus its historical average, with El Nino potentially cutting rainfall further.

The canal carries about 5.0% of global maritime trade and handles around 40.0% of US container traffic, making the schedule change relevant for shipping capacity and costs.

Agencies including Agence France-Presse cited the authority’s remarks in reporting the adjustment to transit operations.

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