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By Edward Sebbie Graham
The Panama Canal Authority in August 2026, announced that it will cap daily transits again because of El Niño:
From Sept 4, it will limit traffic to 34 vessels per day — 9 slots at the Neopanamax locks, 25 at the older Panamax locks, whilst from Sept 15, 32 vessels per day, dropping Panamax slots to 23. Current average was 35-36 per day, with normal capacity around 40 9ff4
Rainfall in the canal watershed from May to August had gone down to 34% from historic average, Gatun Lake levels are low.
El Niño is expected to be one of the strongest on record, making Panama drier and considered a reversal. In May, the Authority told Reuters it had no plans to limit transits in 2026 and was relying on conservation measures from 2025.
Among other measures is a tighter draft limits for large ships. Neopanamax max draft cut to 14.63m from Aug 26, and 14.48m from Sept 3, indicating that ships must carry less cargo to float safely.
Earlier this month, one container/LPG vessel paid $4 million in an auction to jump the queue as waiting times grew. The canal handles about 5% of global maritime trade and 40% of US container traffic.
The last major drought in 2023 cut traffic by 36% and disrupted supply chains. Analysts are warning of similar ripple effects on shipping times and consumer prices if cuts deepen.
The Panama Canal is an artificial 82-kilometer waterway in Panama that connects the Caribbean Sea with the Pacific Ocean. It cuts across the narrowest point of the Isthmus of Panama, and is a conduit for maritime trade between the Atlantic Ocean and the Pacific Ocean.
