The El Niño weather phenomenon is expected to increase the likelihood of drought and excess heat across the region.
Published On 21 Aug 2026
The Panama Canal is expected to limit traffic from early September as it prepares for lower water levels linked to the El Niño weather pattern.
On Thursday, the Panama Canal Authority announced daily transit caps to address the drier conditions anticipated in the coming months.
From September 4, a maximum of 34 vessels will be allowed to transit the waterway each day. The limit will be further reduced to 32 ships on September 15.
The decision marks a reversal for the authority, which in May stated it had no plans to impose restrictions this year, citing water‑conservation measures introduced after a severe drought the previous year.
Normally the canal can accommodate roughly 40 transits daily, handling about 5 % of global maritime trade. Since June, average daily traffic has been around 35 vessels.
Reduced passage through the canal is likely to slow international shipping and increase costs for industries that depend on this critical link.
A severe drought in 2023, also driven by El Niño and accelerating climate change, cut canal traffic by about 36 %, disrupting global supply chains.
El Niño is a naturally occurring climate event that recurs every two to seven years, characterised by unusually warm surface waters in the eastern tropical Pacific. It can generate extreme weather worldwide, bringing heat, drought to some regions and flooding to others.
Scientists anticipate a particularly strong El Niño developing in the coming months, which could intensify the risk of extreme weather events.
The canal’s operations rely on a lock system that lifts and lowers vessels between the Pacific Ocean and the Caribbean Sea. Freshwater from Gatun Lake supplies the necessary water for the locks and also provides drinking water for nearby cities, including Panama City.
