Panama Canal Faces Deeper Traffic Restrictions as Strengthening El Niño Threatens Water Levels

The Panama Canal, which connects the Atlantic and Pacific Oceans, is facing potential further reductions in daily ship traffic as a strengthening El Niño sparks growing concerns over water shortages along one of the world’s busiest maritime trade routes.

The warning was issued on Monday by the new administrator of the Panama Canal Authority, Ilya Espino de Marotta, following the government's declaration of a nationwide state of emergency over El Niño on August 26. The crucial waterway, responsible for handling 5 percent of global maritime trade, has already lowered its daily vessel limit from 36 last month to 34 on September 4, with a further reduction to 32 ships scheduled for September 15.

Speaking to the AFP news agency, Espino stated that restrictions could tighten even more if the ongoing drought persists, noting that limits might be reduced to 29 or a similar figure by February or March. Rainfall levels over the upcoming critical months of September, October, and November will ultimately dictate whether transit slots are scaled back further in early 2025.

The Panama Canal relies heavily on freshwater to operate its lock system, which raises and lowers vessels between the Atlantic and Pacific oceans. This water is primarily supplied by the artificial Gatun and Alajuela lakes, which are replenished by rainfall. Because an average transit consumes roughly 200 million litres of water, the 80km canal remains exceptionally vulnerable to prolonged dry spells.

In addition to limiting the number of transiting vessels, authorities have lowered the maximum draft from 15.2 metres to 14.6 metres, forcing ships to carry lighter cargo loads to navigate safely. As a longer-term fix, Panama is pursuing a new reservoir project at Rio Indio, though the infrastructure initiative is expected to take five to six years to complete.