Panama Canal to reduce shipping over El Nino-fueled drought

The Panama Canal will limit daily shipping capacity starting September 3rd due to a drought exacerbated by the El Nino weather phenomenon, according to the operator of the canal. The number of vessels permitted through the canal each day will decrease from 36 to 34, and then further to 32 from September 15th. El Nino causes widespread alterations in global weather patterns, leading to a severe drought affecting Central America.

The canal, handling five percent of global maritime trade and 40 percent of US container traffic, relies on rainwater collected in two artificial lakes. The canal authority has already taken steps to conserve water, including reducing the maximum draft for larger ships. This year's El Nino ranks among the strongest on record. Honduras has declared 80 percent of the country to be under a drought alert.