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

Due to low rainfall caused by El Niño, the Panama Canal's operator plans to reduce the number of vessels passing through the waterway. The Panama Canal Authority (ACP) informed shipping firms on Thursday that 32 vessels will be allowed to pass through from September 15th, down from 36 vessels currently. El Niño, a periodic pattern of sea surface warming, impacts weather systems worldwide, with this year expected to be particularly intense due to climate change.

The shipping industry is currently facing significant disruptions from the Iran war, which has led to a substantial decrease in vessels using the Strait of Hormuz.

The ACP implemented these measures to maintain service reliability and protect water resources for human consumption. Despite the arrival of the rainy season in Central America and existing water-saving efforts, additional steps are required to ensure the long-term sustainability of transit operations. The new measures will be gradually introduced starting from September 3rd.

The Panama Canal significantly reduces the time and distance ships must travel between the Atlantic and Pacific Oceans. Approximately 14,000 ships per year utilize the artificial waterway, which operates around the clock, 365 days a year. Beyond serving as a crucial route for global trade, the canal also generates about $3 billion annually for Panama.

In 2023, the ACP reduced the number of vessels using the waterway during the previous El Niño period after Panama experienced its driest October since records began in 1950. Since then, the authority has introduced measures to minimize water usage.

Forecasts suggest that this year's El Niño, a naturally occurring phenomenon, could be one of the strongest on record, potentially causing disruptions to weather, food supplies, and economies.