The Panama Canal will reduce shipping volumes from next month because of a drought fueled by the El Nino phenomenon, the operator of the strategic waterway linking the Atlantic and Pacific oceans reported on August 20, 2026. (AFP photo)
The Panama Canal will cut the number of ships passing through it starting next month because of drought caused by the El Nino phenomenon, the operator of the strategic waterway linking the Atlantic and Pacific has said.
From Sept. 3, the number of vessels allowed through each day will fall from 36 to 34 due to low water levels in two artificial lakes that feed the canal, the Panama Canal Authority said.
It will drop to 32 from Sept. 15 on, the agency said.
In the area of the canal rainfall from May to August is down by 34 percent from its historical average, the authority said, adding that El Nino could cut it even more.
The Panama Canal handles 5 percent of global maritime trade and around 40 percent of U.S. container traffic.
The canal operator has already implemented other water conservation measures, such as lowering the maximum draft, the vessel's depth in the water, for the largest ships.
The operator said on Aug. 20 that with the upcoming reduction, waiting times for ships trying to get through without making a reservation beforehand will increase.
Nine of 10 ships using the canal do so with a reservation, and the remaining slots are auctioned off.
Before the Iran war the average winning bid in these auctions was $135,000. But in April one shipping company eager to use the canal paid a whopping $4 million.
The operator said it does not rule out further restrictions on shipping depending on how much it rains in the coming weeks.
