Panama Canal Announces Shipping Restrictions Due to Impending El Nino Drought Conditions

The vessel Sirius Leader passes through the Miraflores locks while transiting the Panama Canal on September 23, 2023. The Panama Canal is preparing to restrict maritime traffic beginning in early September to manage anticipated lower water levels driven by the El Nino weather phenomenon.

On Thursday, the Panama Canal Authority announced that daily transit caps will be implemented to address upcoming drier weather. Starting September 4, only 34 vessels will be allowed to sail through the waterway. A further reduction will take effect on September 15, lowering the limit to 32 ships per day.

These new travel restrictions mark a shift for the Panama Canal Authority. Officials previously stated to Reuters in May that no crossing limits were planned for this year, pointing to water conservation measures put in place last year.

Handling approximately 5 percent of global maritime trade, the canal typically accommodates about 40 vessels daily. Since June, it has maintained a daily average of 35 transits. Significant reductions in traffic are expected to cause slower international shipping times and potentially higher costs for industries relying on the route.

A severe drought in 2023 previously reduced Panama Canal traffic by about 36 percent, disrupting global supply chains. Those lower water levels were linked to El Nino and human-driven climate change.

El Nino is a natural weather cycle occurring every two to seven years when the eastern tropical Pacific Ocean warms above average. This phenomenon triggers global weather shifts, causing extreme heat and drought in some regions and heavy flooding in others. Scientists anticipate an exceptionally strong El Nino in the coming months, which may rank among the most intense on record and increase extreme weather events.

The Panama Canal Authority has historically enforced vessel restrictions to preserve water. The canal operates via a lock system that relies on freshwater from nearby lakes and reservoirs, particularly Gatun Lake. Because Gatun Lake also provides drinking water for Panama City and other nearby communities, severe droughts place additional strain on the entire system.