Panama Canal to cap daily transits, anticipating severe El Niño

The Panama Canal Authority is set to cap daily vessel transits starting early September in anticipation of a severe El Niño season that will likely lower water levels, it announced on Thursday. This decision reverses a previous commitment to avoid any transit restrictions. The new measures will limit daily transits to 34 vessels from September 4, reducing to 32 vessels by September 15.

Historically, the canal has seen an average of 35 daily transits through June 2026, with a capacity to accommodate around 40 crossings per day. However, canal authorities had previously stated there were no plans for vessel passage restrictions this year, having implemented water conservation measures since 2025.

On September 4, daily capacity at the Neopanamax locks will be capped at nine slots, while the older Panamax locks will see a reduction to 25 slots. By September 15, the Panamax locks will be further limited to 23 slots. The canal authority has tightened draft limits multiple times as part of its water management strategy.

Rainfall from May to August was 34% below the historical average, with watershed inflows plunging 44% below normal. The authority warned that the intensity of the 2026-2027 El Niño event could exacerbate water level reductions, jeopardizing the canal's long-term sustainability and local water supplies.

Additionally, the authority is delaying previously scheduled reductions to maximum authorized drafts. Adjustments to 14.63 meters (48.0 feet) in the Neopanamax locks were postponed until September 2, while a subsequent move to 14.48 meters (47.5 feet) was pushed back to October 1. Draft refers to the water depth needed for a ship's safe passage, and a lower limit means vessels may need to carry less cargo.

Panama Canal administrator Ricaurte Vasquez stated that El Niño this year could last longer than previous events, necessitating the limitation of transit capacity, similar to measures taken during droughts in 2023 and 2024. Vasquez emphasized the canal's discipline in handling unpredictable situations, having learned from past experiences.