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Worldwide shipping repercussions expected as El Niño chokes Panama Canal

From Jamaica Observer · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources Ongoing story
  • The Panama Canal will cut daily vessel traffic from 36 to 32 ships starting Friday because drought has reduced water supplies.
  • Authorities will also lower the maximum vessel draft, while warning that restrictions could tighten if reservoir levels do not recover.
  • The canal handles about 5% of global trade, and prolonged limits could increase shipping costs, delays and consumer prices.

The Panama Canal is preparing to restrict shipping again as drought linked to the El Niño climate phenomenon drains the freshwater reserves needed to operate its locks.

Water is the most important resource for operations

· Erick CordobaThe canal’s water manager described the freshwater reserves as essential to keeping the locks operating.

From Friday, the strategic 80-kilometre waterway will reduce daily traffic from 36 to 32 vessels. Canal authorities will also lower the permitted draft from 15.24 metres to 14.63 metres, limiting how deeply ships can sit in the water.

The canal relies mainly on rainfall stored in artificial lakes. Each ship requires about 200 million litres of freshwater to pass through, and that water is discharged into the sea after the locks lift and lower the vessel. “Water is the most important resource for operations,” canal water manager Erick Cordoba told AFP. But accumulated rainfall between April and August stood 35.8% below the historical average, he said, adding that there were “no signs of recovery in the short term.”

No signs of recovery in the short term

· Erick CordobaCordoba described the outlook for rainfall and reservoir recovery.

Panama has declared an emergency over El Niño, which alters winds and rainfall after raising surface temperatures in the central and eastern equatorial Pacific. The drought could last until mid-2027, while forecasts indicate that the 2027 dry season may begin early and continue into May.

If we don’t manage to fill the lakes in November, we’re going to have to tighten our belts

· Jorge QuijanoThe former canal administrator warned that additional restrictions could follow.

The canal imposed even stricter limits in 2023 and 2024, cutting daily transits to 22 and the maximum draft to 13.41 metres. Vessel numbers fell by 20%, tonnage dropped 17% and queues lengthened. Former canal administrator Jorge Quijano warned that further restrictions could follow if the lakes are not replenished in November. He said a 30-centimetre reduction in draft costs a ship roughly 200 containers, a serious loss for vessels carrying as many as 16,000. Rebecca Bill Chavez of the Inter-American Dialogue said lasting restrictions would mean “higher shipping costs and longer waiting times” and ultimately higher prices for consumers.

Higher shipping costs and longer waiting times

· Rebecca Bill ChavezThe Inter-American Dialogue president described likely effects of prolonged restrictions.
About this summary

Originally published by Jamaica Observer in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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