Panama Canal to cap daily transits, anticipating severe El Nino
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PANAMA CITY: The Panama Canal Authority will cap daily transits as of early September as it gears up for a longer-than-usual El Nino season expected to reduce water levels, it said on Thursday (Aug 20), walking back a previous pledge to not limit vessel passage.
Under the new measures, the canal will limit daily transits as of Sep 4 to 34 vessels, and reduce the number to 32 as of Sep 15.
The canal had registered an average of 35 daily transits through June 2026, corresponding to vessel demand, with the capacity to handle around 40 crossings per day.
In May, canal authorities told Reuters that the waterway was not planning vessel passage restrictions this year, and had already been taking water conservation measures since 2025.
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According to an advisory issued Thursday, daily capacity as of Sep 4 at the canal's Neopanamax locks will be capped at nine slots, while capacity at the older Panamax locks will be limited to 25 slots.
As of Sep 15, capacity at the Panamax locks will be further reduced to 23 slots.
The canal authority had previously tightened draft limits several times as part of its water management strategy.
The authority also disclosed that rainfall from May through August was 34 per cent below the historical average, while watershed inflows plummeted 44 per cent below normal.
It warned that the anticipated severity of the 2026-2027 El Nino event could further reduce precipitation, threatening the long-term sustainability of the waterway and local water supplies.
Additionally, the authority is postponing previously scheduled reductions to maximum authorised drafts. A planned adjustment to 14.63m in the Neopanamax locks was delayed until Sep 2, while a subsequent move to 14.48m was pushed back to Oct 1.
Draft is the depth of water a ship needs to float safely; a lower draft limit means vessels may have to carry less cargo in order to pass through the canal.
Panama Canal administrator Ricaurte Vasquez said El Nino this year could last much longer than before, requiring the canal to limit transit capacity, as it did during a drought in 2023 and 2024, in addition to imposing draft restrictions.
"The experience of 2023 and 2024 has prepared us well for what we know and has given us the discipline to deal with what we do not know. The canal does not improvise," Vasquez said on Wednesday at a business event.
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