Panama Canal to cut number of ships passing through due to El Niño

Panama Canal Authority (ACP) announced on Thursday that daily transits will be reduced from 36 vessels to 32 starting 15 September, citing diminished rainfall linked to the current El Niño episode. The authority said the adjustment is intended to maintain operational reliability and protect freshwater supplies for local consumption. El Niño, a periodic warming of sea‑surface temperatures that influences global weather patterns, is forecast to be especially intense this year, with climate change amplifying its effects. The shipping sector is already contending with disruptions caused by the Iran‑related slowdown in the Strait of Hormuz. ACP noted that, although the rainy season in Central America and existing water‑saving measures have helped, additional steps are required 'to ensure the long‑term sustainability of transit operations'. The new limits will be introduced gradually beginning 3 September. The canal shortens the route between the Atlantic and Pacific oceans for roughly 14,000 ships each year, operating continuously, 24 hours a day, 365 days a year. Beyond its role in global trade, the waterway generates about $3 billion (£2.2 billion) annually for Panama. In 2023, ACP similarly cut vessel numbers during a previous El Niño spell after Panama recorded its driest October since 1950. Since then, the authority has instituted various water‑conservation measures. Analysts warn that this year’s El Niño, a naturally occurring cycle, could rank among the strongest on record, threatening weather stability, food supplies and economic activity worldwide.