Panama Canal to limit shipping ahead of extreme weather during El Nino

What the report says

Al Jazeera reports that the Panama Canal Authority will begin limiting daily ship transits in early September as it prepares for lower water levels linked to El Nino. The move marks a shift from earlier comments this year, when officials said they did not expect to impose new crossing limits. The canal is one of the world’s most important shipping routes, handling about 5% of global maritime trade, and authorities say reduced traffic could slow international deliveries and raise costs for industries that depend on the waterway.

According to the report, the new cap will allow 34 vessels per day starting September 4, with a further reduction to 32 ships from September 15. The canal normally has room for about 40 transits a day, and its recent average has been around 35 since June. Al Jazeera notes that the authority is responding to concerns about drier conditions ahead, with El Nino expected to increase the chance of drought and excessive heat across the region.

The outlet adds that the canal was also hit by severe drought in 2023, when traffic fell sharply and global supply chains were disrupted. The waterway depends on freshwater from lakes and reservoirs, including Gatun Lake, which also supplies drinking water to nearby communities and Panama City. More broadly, El Nino is a recurring climate pattern that can affect weather far beyond Panama, including drought in some areas and flooding in others.