Panama Canal Cuts Daily Ship Transits to 32 Amid Water Shortage

The Panama Canal Authority announced it is reducing daily ship transits due to falling water levels in two artificial lakes that supply the waterway. The reduction will be phased in gradually, bringing the number of daily transits down from 36 to 32 vessels by mid-September.

El Niño and the national emergency declaration

Panama has declared a nationwide emergency in response to El Niño. The phenomenon, which occurs every two to seven years, involves elevated sea surface temperatures in the central and eastern equatorial Pacific Ocean. These temperature shifts trigger widespread atmospheric changes—including wind patterns, pressure systems, and precipitation—across the globe.

Severity and regional impact

This year’s El Niño event is projected by most forecasts to be the strongest since comparable records began four decades ago. Though the phenomenon has not yet peaked, Central America is already experiencing intensifying drought conditions. Honduras and El Salvador have each declared states of alert in response.

Canal operations and mitigation measures

Approximately 5% of global maritime trade passes through the 80-kilometre-long Panama Canal, with the United States and China among its largest users. To conserve water, additional operational adjustments have been introduced, including restrictions on vessel draft—the vertical distance between the waterline and the lowest point of a ship’s hull.

Historical precedent

In 2023, the Canal Authority reduced daily transits to 22 ships as a result of El Niño–related impacts.