The Panama Canal is set to implement further reductions in maritime traffic due to the ongoing El Niño weather phenomenon, which has already led to decreased transit numbers. The canal’s administrator announced that the country is facing a nationwide emergency as El Niño disrupts weather patterns globally and contributes to rising temperatures. This situation has resulted in a significant drought in Central America, severely impacting the canal’s operations.
Approximately 5% of global trade relies on the Panama Canal, which requires water to operate its locks that raise and lower ships during their transit. To conserve water, canal authorities reduced daily transits from 36 to 32 as of September 4 and plan to lower this to an average of 29.5 transits per day starting in October. This adjustment is reflected in a draft budget submitted to Panama’s parliament, which aims to maintain the canal’s safe and efficient operation.
The current El Niño event is anticipated to be the most intense in over 40 years, leading to significant operational changes. In 2023, the phenomenon already necessitated a cut in daily transits from 38 to 22. Additionally, geopolitical tensions, such as the US-Israeli conflict involving Iran, have increased traffic through the canal as alternatives like the Strait of Hormuz face disruptions.
