Panama Canal to cut daily transits to 32 from Sept. 15 amid El Niño

The Panama Canal Authority will cap daily vessel transits at 34 from Sept. 4 and cut them to 32 from Sept. 15, walking back an earlier pledge to avoid limits as El Niño-linked heat and below-average rainfall shrink the freshwater reservoirs that feed the locks. The move echoes 2023-24 drought curbs that cut daily traffic to as few as 22 ships. Auction premiums for priority passage have topped $1 million, with one tanker reported above $4 million, and roughly half of gas carriers bound for Asia chose the Cape of Good Hope in August—the highest share in a decade. The canal handles about 14,000 ships a year, roughly 5% of global maritime trade, and generates about $3 billion annually for Panama. NOAA sees a greater than 90% chance of a very strong El Niño through the Northern Hemisphere fall and winter of 2026-27, while Panama weighs a long-term Río Indio reservoir to secure water for the canal and nearby communities.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.