Panama Canal to reduce shipping over El Nino-fuelled drought

The Panama Canal will cut shipping volumes starting September 3 due to a drought caused by the strong El Nino weather pattern, according to the canal's operator. From 36 vessels, the daily number of ships allowed through will be reduced to 34, then to 32 from September 15. Central America is experiencing a severe drought driven by El Nino, which warms the Pacific Ocean and disrupts global weather patterns.

The Panama Canal handles 5% of global maritime trade and around 40% of US container traffic. The canal is fed by rainwater collected in two artificial lakes. Canal authorities noted lower-than-forecast rainfall in the canal's watershed requires measures to ensure the waterway's long-term sustainability. They have already implemented water conservation measures, such as lowering the maximum draft for the largest ships.

This year's El Nino is considered one of the strongest on record. Honduras government placed 80% of the country on drought alert on Wednesday.