Panama Canal ship traffic cut as El Niño drought forces stricter limits

Panama Canal ship traffic cut announced

The Panama Canal Authority confirmed on Thursday that a severe El Niño‑linked drought will force a Panama Canal ship traffic cut beginning September 3. Water levels in Gatun Lake have fallen below operational thresholds, prompting the agency to trim daily transits from ↓ 36 ships to 34 on September 3, and to ↓ 32 ships from September 15 onward.

“The situation is unprecedented in recent memory; we must act decisively to preserve the canal’s throughput,” said Jorge Márquez, director of operations.

Stakeholders warn that the reduction could ripple through global supply chains, inflating freight rates on routes that rely on the shortcut between the Atlantic and Pacific. Reuters reports that similar constraints have already nudged carriers to reroute via the Cape of Good Hope, adding up to 10‑15 percent more travel time.

Dispatch from Julian Vance (Senior Global Security Correspondent).