Panama Canal to reduce shipping over El Niño-fueled drought

Starting September 3rd, the Panama Canal will reduce the number of ships allowed to pass through each day from 36 to 34 due to drought caused by El Niño, according to the canal's operator. The decrease will continue to 32 daily ship transits on September 15th. Central America is experiencing a severe drought driven by the El Niño phenomenon, with rainfall in the canal's watershed from May to August down 34% from its historical average.

The Panama Canal handles 5% of global maritime trade and 40% of U.S. container traffic. The operator has already implemented water conservation measures such as lowering the maximum draft for the largest ships. However, with the upcoming reduction, waiting times for ships trying to get through without a reservation will increase.

The canal's main users are the United States, China, Japan, Chile, and South Korea. The water issue is particularly sensitive in Panama as the lakes that feed the canal also provide water for half of the country's population of 4.2 million. This year's El Niño is shaping up to be one of the strongest on record, and the government of Honduras has placed 80% of the country on drought alert. Further restrictions on shipping may be imposed by the canal operator depending on future rainfall.