Panama Canal to reduce shipping over El Nino-fuelled drought

The Panama Canal will reduce shipping volumes from September due to a drought exacerbated by the strong El Nino phenomenon currently affecting Central America. The canal authority announced that the daily number of vessels allowed through the strategic waterway will decrease from 36 to 34, and further to 32 from September 15. El Nino, a warming of surface temperatures in the Pacific, triggers worldwide changes in wind patterns, atmospheric pressure, and rainfall, leading to severe droughts.

The Panama Canal, handling 5% of global maritime trade and around 40% of US container traffic, relies on rainwater collected in two artificial lakes. The operator has already implemented other water conservation measures, including lowering the maximum draft for the largest ships. The canal's watershed, however, is experiencing rainfall levels lower than forecast, prompting the authority to take these measures for the long-term sustainability of the waterway. Honduras has also placed 80% of the country on drought alert due to the ongoing El Nino.