The Panama Canal Authority has announced new restrictions on daily vessel transits in response to the drought associated with a strong El Niño phenomenon, which could extend into 2027.
This measure will reduce daily transits from an average of 36 vessels to 32, in addition to the draft restrictions already in place. The Canal, operational since 1914 and expanded in 2016, is the only freshwater canal of its kind in the world and is supplied by the artificial lakes of Gatun and Alhajuela.
A phased reduction in transits
From 3 September, the number of daily booking slots available in the Neopanamax locks will be reduced to nine, compared with the usual average of ten. In the Panamax locks, the number of slots will be set at 25, down from the usual 26, bringing the total to 34 daily transits from that date.
A second adjustment will come into effect on 15 September 2026, when the number of daily slots in the Panamax locks will be reduced to 23. This will leave the Canal with a total of 32 daily transits.
According to the Canal Authority, current basin conditions, including lower-than-expected rainfall in the Canal watershed, require additional measures to support the long-term sustainability of transit operations.
Draft reduction dates postponed
The announcement comes on top of existing draft restrictions in the expanded Canal, although some of the scheduled dates have now been delayed.
Implementation of a 48-foot draft, equivalent to 14.63 metres, initially planned for 26 August, has been postponed until 2 September. The reduction to 47.5 feet, or 14.48 metres, originally scheduled for 3 September, has been moved to 1 October.
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Draft management is directly linked to the level of Gatun Lake, which, under optimal conditions of 89 feet or 26.11 metres, allows the expanded Canal to offer its maximum draft capacity of 50 feet.
Possible increase in waiting times
The Canal Authority has warned customers that the reduction in daily transits could increase waiting times for vessels arriving without a confirmed reservation. It has therefore recommended using the available booking options to avoid prolonged delays.
The waterway offers both a reservation system for scheduled transit and an auction system for vessels without a pre-booked crossing.
In 2023, also under a strong El Niño phenomenon, the Canal suffered congestion after restrictions reduced daily transits to 22 vessels in November of that year.
Auction slots to be temporarily adjusted
Demand for Canal crossings has increased amid market uncertainty linked to the crisis in the Middle East, pushing auction prices above US$1 million per slot. In some cases, last-minute transit payments have reportedly reached as much as US$4 million.
In this context, the Canal Authority will temporarily adjust its daily auction slot offering in order to promote a more equitable allocation process, better reflecting the composition of the market, including different cargo types and the characteristics of each segment.
The Panama Canal mainly serves routes between the U.S. East Coast and Asia, the U.S. East Coast and the west coast of South America, and Europe and the west coast of South America. It handles all types of cargo, including grain, vehicles, liquefied natural gas and other energy products.
