The Panama Canal Authority announced it will cap daily transits beginning in early September, preparing for lower water levels caused by an expected severe and prolonged El Niño season. This decision reverses earlier assurances from May, where canal authorities stated no restrictions on vessel passage were planned for this year. The canal typically handles around 40 crossings per day, and averaged 35 daily transits through June 2026.
Under the new measures, daily transits will be limited to 34 vessels as of September 4, further reducing to 32 vessels by September 15. The Neopanamax locks will be capped at 9 slots and the older Panamax locks at 25 slots as of September 4, with Panamax slots decreasing to 23 by September 15. This reduction in capacity is a direct response to rainfall from May through August being 34% below the historical average, and watershed inflows plummeting 44% below normal. These steps are a repeat of actions taken during a severe drought in 2023 and 2024, which reduced traffic by roughly 36% and caused global supply chain disruptions.
The canal authority also disclosed that a severe El Niño event could further reduce precipitation, threatening the long-term sustainability of the waterway and local water supplies, including drinking water for cities like Panama City. Canal administrator Ricaurte Vasquez emphasized that previous drought experiences in 2023 and 2024 have prepared them for these challenges. The authority also plans to temporarily adjust daily auction slots to ensure a more equitable allocation process across various cargo types and market segments, with full container vessels with the highest TEU capacity receiving priority in Neopanamax Locks. Customers without secured reservations are warned of increased waiting times, as non-booked vessels are already experiencing average waits of 8.5 days northbound and 7.7 days southbound. High demand for auction slots has led to record-breaking bids, with one LPG carrier reportedly paying $4.6 million in early August to jump the line.
