Drought at the Panama Canal

A tanker transits through the Panamax locks of the Panama Canal. Photo courtesy Panama Canal Authority

Panama Canal;s Strategies for Water Scarcity Amid El Niño Challenges

The Panama Canal Authority has implemented innovative strategies to address water scarcity challenges caused by the 2023-2024 El Niño phenomenon. Administrator Ricaurte Vásquez Morales shared the success of recent initiatives at the 2025 Investor Forum, including auctioning transit spaces based on draft restrictions and different lock usage pricing. These measures have optimized yields, reduced costs, and maintained competitiveness.

A CMA CGM containerships transits the Panama Canal

Panama Canal Plans Reservoir Expansion to Combat Next Drought

11 months ago11 months ago2 mins

The Panama Canal is preparing for a potential drought, with plans to expand capacity for larger ships and increase water reservoirs. Despite past drought challenges, efforts are being made to increase vessel passage and revenue targets. With a focus on water conservation and operational efficiency, the canal is gearing up for future challenges.

Panama Canal Authority Bolsters Capacity Due to Surging Water Levels

12 months ago12 months ago2 mins

The Panama Canal Authority increases daily passages and maximum draft of Neopanamax locks, nearing normal operations post historic drought. Vessels may now pass with a draft of 14.94 meters. Number of daily transits adjusted to 35, aiming for 36 in September. Monitoring lake levels for future adjustments.

A tanker transits the Panama Canal Locks

Panama Canal to Increase Daily Ship Transits Amid Improved Water Levels

1 year ago12 months ago2 mins

The Panama Canal plans to increase daily ship transit slots to 36 in September, up from 34, due to improved water levels following a drought. Queues of over 100 ships have been a challenge, but operations are expected to normalize. The canal aims to remain competitive amidst new Atlantic-Pacific projects in Colombia and Mexico.

Panama Canal Considers New Reservoir to Improve Shipping Route Reliability

1 year ago1 year ago2 mins

Charlotte Goldstone from The Load Star reports on plans to build a new reservoir on the Panama Canal to improve reliability. The reservoir could be completed within four to five years once regulatory and social hurdles are overcome. The project aims to strengthen the canal’s resilience following last year’s drought and reduce shipping bottlenecks.

Panama Canal Averts Shipping Crisis with Water Management Efforts

1 year ago1 year ago2 mins

The Panama Canal averted a shipping crisis by managing water carefully, with the recent raising of ship limits indicating a hopeful return to full capacity. Extreme weather conditions continue to impact global trade, highlighting the need for adaptation and mitigation strategies. The recovery is welcomed by exporters and could benefit LNG tankers.

Panama Canal Beats Deadline for Increasing Maximum Draft Limit

1 year ago1 year ago2 mins

The Panama Canal Authority has increased the maximum draft of the Neopanamax locks to 45 feet, nearing the normal limit of 50 feet due to the rainy season. The move precedes adding an extra transit, boosting daily transits to 32. The canal is recovering from a year-long drought, with water levels rising above 2023 levels.

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