The Panama Canal is preparing to reduce the number of ships allowed through the vital waterway as a severe drought linked to the El Niño weather pattern continues to drain water supplies.
The Panama Canal Authority said falling water levels in the two artificial lakes that supply the canal have forced it to introduce further restrictions. The number of vessels permitted to transit each day will gradually fall from 36 to 32 by the middle of September.
The canal is a major route for international trade, connecting the Atlantic and Pacific oceans and carrying about 5% of global maritime commerce. It also handles roughly 40% of US container traffic, making any prolonged disruption a concern for shipping companies and global supply chains.
Panama has declared a nationwide emergency because of the drought. Central America has also been experiencing increasingly difficult conditions, with Honduras and El Salvador declaring emergencies as water shortages worsen.
The latest restrictions add to measures already introduced by the canal authority to conserve water. These include reducing the maximum draft allowed for large vessels, limiting how deeply ships can sit in the water while making their journey through the canal.
The Panama Canal faced similar difficulties during the previous major El Niño event. In 2023, prolonged dry conditions forced authorities to reduce daily crossings to just 22 vessels.
The latest weather outlook has raised concerns that restrictions could become more severe. The World Meteorological Organization said on Thursday that a potentially exceptional El Niño warming event is now firmly established across the tropical Pacific. It expects the phenomenon to strengthen considerably during the coming months and develop into a very strong El Niño.
The event is forecast to intensify through autumn and reach its peak toward the end of 2026. Its effects on weather patterns are expected to continue into 2027.
El Niño is a naturally occurring climate phenomenon that develops when unusually warm ocean temperatures in the tropical Pacific alter atmospheric circulation, rainfall and wind patterns around the world. The WMO has stressed that the phenomenon itself is not caused by human-driven climate change.
However, scientists say the current event is developing against a backdrop of record global temperatures and unusually warm oceans.
For Panama, the immediate concern is the availability of enough water to keep one of the world’s busiest trade routes operating efficiently. Further reductions in vessel traffic could affect shipping schedules and increase pressure on companies already facing higher costs and longer journeys.
