Panama Canal may cut ship traffic further as El Niño strengthens

What the report says

Panama’s canal authority is weighing additional limits on ship traffic as a strengthening El Niño worsens drought concerns, according to Al Jazeera. The warning came from the new administrator of the Panama Canal Authority, Ilya Espino de Marotta, after Panama declared a nationwide state of emergency over El Niño on August 26.

The canal, which links the Atlantic and Pacific oceans and carries a significant share of global maritime trade, has already been adjusting operations because of falling water levels in its reservoirs. Al Jazeera reported that the daily transit cap was lowered from 36 ships to 34 starting September 4, and is set to fall again to 32 on September 15. Espino said more cuts could follow if rainfall in the coming months does not improve conditions, with the possibility that limits could drop further in early 2027.

The restrictions reflect the canal’s dependence on freshwater to run its lock system. Water for operations comes mainly from Gatun and Alajuela lakes, which are replenished by rain, and lower reservoir levels have created pressure on traffic and cargo capacity. The channel has also reduced the maximum draft, meaning some ships may need to carry less cargo to pass through.

Al Jazeera said the disruption comes at a sensitive time for shipping, and Panama is planning a new Rio Indio reservoir as a longer-term solution. The project would aim to support both canal operations and domestic water needs, though it is expected to take several years to complete.