Ilya Espino de Marotta, the new administrator of the Panama Canal, announced on Monday that the number of ships passing through could reduce from 32 to 29 daily due to a severe drought linked to the El Niño weather pattern. Panama has declared a nationwide emergency as this year’s El Niño is projected to be the strongest in four decades, significantly impacting global weather and temperatures.
Despite increasing demand for canal transit as shippers avoid the blocked Strait of Hormuz, the Panama Canal has already cut daily ship passages from 36 to 32. Additionally, the maximum permissible draft has been reduced from 15.2 meters to 14.6 meters, limiting how heavily loaded vessels can be. In 2023, drastic measures saw transits drop from 38 to 22 due to low reservoir levels, though Espino de Marotta anticipates current restrictions will not reach that extent.
Water management remains critical, with each ship requiring approximately 200 million liters of water. With rainfall deficiencies at 35.8% below average between April and August, the outlook remains grim, as forecasts predict an earlier dry season extending into May 2027. Experts warn that prolonged restrictions could escalate shipping costs and delivery delays, further straining global supply chains.
