Panama Canal to cut number of ships passing through due to El Niño

The Panama Canal Authority has announced it will reduce the number of ships passing through the key waterway from September due to low rainfall caused by a particularly strong El Niño. Currently, 36 vessels are permitted through the canal each day, but this will be lowered to 32 vessels beginning September 15th. El Niño, a climate phenomenon characterized by periodic sea surface warming, has global weather impacts.

This year's El Niño is expected to be particularly intense due to climate change. The shipping industry is already facing significant disruptions from the Iran war, which has caused a substantial decrease in vessel traffic through the vital Strait of Hormuz. The authority's measures aim to maintain service reliability and protect water resources for human consumption.

Although the arrival of the rainy season in Central America and existing water-saving efforts in the canal offer some relief, further actions are necessary to ensure the long-term sustainability of transit operations. These new measures will be implemented gradually starting September 3rd. The Panama Canal, a crucial route for global trade, is utilized by approximately 14,000 ships annually.

It also contributes about $3 billion to Panama's economy each year. In 2023, the authority reduced vessel numbers during the previous El Niño period, following the driest October since records began in 1950 for Panama. Many forecasts suggest this year's El Niño could be one of the strongest ever recorded, potentially leading to substantial disruptions in weather patterns, food supplies, and economies.