Panama Canal Maintains Shipping Restrictions Amid Water Drought

The Panama Canal is expected to maintain shipping restrictions due to a drought that has caused water levels on its main lake to decline to their lowest point in four years. The Canal Authority will impose draft restrictions, limiting the depth of vessels in the water, to no less than 44 feet for large Neopanamax vessels. While most ships will still be able to pass through, container ships and bulk carriers may have to reduce their cargo. The canal authority is responsible for maintaining a draft of 44 feet and currently allows about 30 to 31 vessels to transit the waterway each day.

Allowing more passages would further decrease the water level at Gatun Lake, which is projected to drop to 79.5 feet by August. The lake’s water is used to fill locks during passage and provides drinking water for half of Panama’s population. The Canal Authority aims to raise the water level back to 84 feet by mid-November, in preparation for the next dry season, by regulating the number of passages and relying on expected rainfall.

The restrictions have resulted in longer wait times for ships queuing for passage. Currently, there are 59 ships waiting. The Canal Authority will prioritize ships with transit slots and handle unbooked ships on a standby basis. Any changes in the draft will be communicated in advance to allow shippers to plan accordingly.

Due to ongoing El Niño conditions, Panama is experiencing drier than usual conditions. As droughts worsen and ship sizes increase, the canal is exploring ways to expand its water supply while ensuring a sufficient drinking water supply. The Canal Authority has collaborated with the US Army Corps of Engineers to explore additional water sources, but initial reports suggest that solutions within the current watershed are limited. Therefore, the canal authority may need to seek new water sources outside of its jurisdiction, potentially requiring legislative action.

The Canal Authority board will convene on July 6 to discuss an action plan and engage with government officials to chart the way forward. Securing an additional water supply is crucial for the future of the waterway, as it aims to remain relevant amidst changing climate conditions and growing demand.

Source .