Panama Canal to Cut Daily Ship Transits Amid El Nino Drought Fears
· World · Al Jazeera, BBC News, The Hindu
The Panama Canal Authority will reduce daily vessel transits to 34 starting September 4, falling further to 32 on September 15 to conserve water ahead of lower levels expected from the approaching El Nino. The move reverses earlier forecasts from May, when officials said no limits were planned this year following water-saving measures adopted in 2023. The canal, which normally handles around 40 vessels daily, has averaged 35 transits per day since June. The canal carries about 5 percent of global maritime trade, linking the Pacific and Caribbean via a lock system fed partly by Gatun Lake. A severe 2023 drought blamed on El Nino and climate change had already cut traffic by roughly 36 percent, disrupting supply chains. Scientists expect a particularly strong El Nino in coming months, raising risks of further extreme weather across the region.
Why it matters
Industries dependent on the Panama Canal route for faster Pacific-Caribbean shipping will face higher costs and delays as transit caps tighten heading into the drier El Nino season. Global supply chains that relied on the canal's usual capacity may see renewed congestion and rerouting pressure if water levels drop sharply.
Read the original report — Al Jazeera
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