Panama Canal cuts ship crossings as El Niño drought drains water supplies

The Panama Canal has begun reducing the number of ships allowed through its locks as an El Niño-driven drought lowers water levels in the artificial lakes that supply the waterway.

The Panama Canal Authority said daily crossings would gradually fall from 36 to 32 by mid-September. The canal has also lowered the maximum draft for the largest ships, limiting how deeply vessels can sit in the water.

Panama has declared a nationwide emergency over El Niño, a Pacific weather pattern that alters winds, atmospheric pressure and rainfall while pushing up global temperatures. The phenomenon has not yet reached its peak, and this year’s event is expected to be the strongest since comparable records began four decades ago.

Central America is already experiencing severe drought conditions. Honduras and El Salvador have also declared emergencies. The canal handles about 5% of global maritime trade and roughly 40% of U.S. container traffic, making water restrictions a significant constraint on shipping through the Atlantic-Pacific route.

El Niño previously forced the canal authority to reduce daily crossings to 22 vessels in 2023.