Panama Canal cuts shipping over El Niño-fuelled drought

The Panama Canal will limit the number of ships sailing through it starting September, due to a drought linked to the El Niño weather pattern, the canal's operator announced. The reduction, from 36 vessels daily to 34, will further decrease to 32 from mid-September. Central America faces a severe drought fueled by El Niño, a weather phenomenon that warms surface waters in the Pacific, altering global weather patterns.

The canal, which handles 5% of global maritime trade and 40% of US container traffic, relies on rainwater collected in artificial lakes for its operation. Canal authorities said the below-average rainfall in the canal's watershed has triggered measures to ensure the waterway's long-term sustainability. Already, the agency has taken steps like reducing the maximum draft for larger ships.

This year's El Niño is among the strongest on record. Honduras' government has placed 80% of the country on drought alert.