The Panama Canal Authority (ACP) will reduce daily vessel transits from 36 to 34 starting Sept. 3, then to 32 from Sept. 15, as El Niño-driven drought lowers water levels in the lakes that feed the waterway.
The Panama Canal Authority announced it will cut the number of ships passing through the canal starting next month because of drought caused by the El Niño climate phenomenon. The reduction is driven by lower water levels in the two artificial lakes that supply the canal, with daily transits falling from 36 to 34 starting Sept. 3, before dropping further to 32 from Sept. 15 onward.
The move marks the latest in a series of capacity adjustments the ACP has rolled out through the summer as forecasters track a developing El Niño pattern expected to suppress rainfall across Central America into 2027. The canal handles roughly 6% of global maritime trade, and past drought-driven restrictions, most notably in 2023-24, led to vessel backlogs, rerouting, and elevated freight costs across affected trade lanes.
IAM Member Impact: For members managing shipments routed through the Panama Canal, the reductions raise the likelihood of booking delays and premium pricing on priority transit slots in the weeks ahead. Members with cargo scheduled to transit the Panama Canal in September should confirm booking status early and budget for potential surcharges.
Source: Euronews