Panama Canal Caps Ship Transits Due to El Niño Drought

The Panama Canal will cut the number of ships passing through it starting next month due to a lack of rainfall as the El Niño weather pattern takes hold.

The Panama Canal Authority (ACP) announced on Thursday, August 2026, that it will cap daily transits. From September 3, the canal will allow 34 ships to pass daily, down from the current 36. From September 15, the number will drop further to 32 ships per day. The canal relies on rainfall to keep ships moving through its lock system.

Rainfall between May and August was about 34% below the historical average for the period. El Niño is characterized by unusually warm ocean surface temperatures in the central and eastern Pacific, causing droughts, floods, and wildfires. Scientists expect this El Niño to be among the largest on record, potentially intensifying extreme weather events. The canal handles about 5% of global maritime trade and around 40% of US container traffic.

About 14,000 ships per year use the artificial waterway. The canal is a key income source for Panama, bringing in about $3 billion a year. In 2023, the ACP cut daily ship transit numbers from 38 to 22 due to severe drought, Panama's driest October since records began in 1950. The ACP has implemented other water conservation measures, such as lowering the maximum draft for the largest ships.

The canal had registered an average of 35 daily transits through June 2026, with capacity for around 40 crossings per day. The new measures will increase waiting times for ships without reservations. Nine of ten ships use reservations; remaining slots are auctioned. The authority is postponing previously scheduled reductions to maximum authorized drafts.