Panama Canal Slashes Daily Transits as Severe El Niño Threatens Water Levels
The Panama Canal will cap daily vessel transits starting September 4, 2026, reversing earlier assurances, as a severe El Niño threatens water levels.
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The Panama Canal Authority announced new transit limits on Friday, capping daily crossings at 34 vessels from September 4, 2026, and further reducing to 32 from September 15. This reverses an earlier commitment made in May, when canal officials told Reuters that no passage restrictions were planned for 2026, despite water conservation measures in place since 2025.
The canal has averaged 35 daily transits through June 2026, against a capacity of about 40 crossings per day. The new caps will bring the number of daily transits below the recent average, a step the authority says is necessary to conserve water. The restrictions apply separately to the canal's two lock systems: the Neopanamax locks will be limited to nine slots per day from September 4, while the Panamax locks will allow 25 slots per day from that date, dropping to 23 slots from September 15.
The decision comes as rainfall in the canal's watershed from May through August 2026 has been 34 percent below the historical average, and inflows into the system are 44 percent below normal. In response, the authority has also adjusted its planned draft reductions. A reduction to 14.63 meters (48.0 feet) in the Neopanamax locks, previously scheduled for an earlier date, is now set for September 2, 2026. A further reduction to 14.48 meters (47.5 feet) has been delayed to October 1, 2026.
Canal administrator Ricaurte Vasquez cited the approaching El Niño as the primary reason for the measures. He said that this year's El Niño could last much longer than previous ones, requiring transit limits and draft restrictions similar to those imposed during the 2023-2024 drought. "The experience of 2023 and 2024 has prepared us well for what we know and has given us the discipline to deal with what we do not know. The canal does not improvise," Vasquez said.
The restrictions will affect shipping companies that rely on the canal, which handles about 5 percent of global maritime trade and about 40 percent of U.S. container vessels. Waiting times for ships without reservations are expected to increase, and empty slots will be auctioned; the average bid before the US-Iran war was about $135,000, and one company paid $4 million in April. Two artificial lakes that supply the canal's water have dried up, and the canal's lakes also provide water for 4.2 million people. In Honduras, the government has put 80% of the country on severe drought alert, underscoring the regional impact of the dry conditions.