The Panama Canal Authority announced it will reduce the daily number of vessels transiting the canal starting in September due to low water levels linked to drought conditions caused by the El Niño weather phenomenon. Beginning September 3, the canal will limit daily ship passages from 36 to 34, a further reduction to 32 vessels per day is planned to take effect from September 15.

Officials cited a significant decrease in rainfall as the primary factor behind the water shortage. Between May and August, precipitation in the region was approximately 34% below the historical average, impacting the two artificial lakes—Gatun Lake and Lake Alajuela—that supply water to the canal’s locks.

The Panama Canal is a critical maritime route connecting the Atlantic and Pacific Oceans and is vital for international shipping. The reduced capacity could affect shipping schedules and global supply chains, particularly as the canal handles a substantial portion of international cargo traffic.

The canal authority is monitoring conditions closely and indicated that adjustments may be made if rainfall improves or further deteriorates. This reduction in vessel allowances marks one of the significant operational changes for the waterway in response to climatic fluctuations driven by El Niño, which has caused widespread drought impacts in the region.