PANAMA CANAL TO REDUCE DAILY VESSEL PASSAGE DUE TO LOW RAINFALL

The Panama Canal Authority announced on Thursday that it will reduce the number of vessels permitted to pass through the waterway daily from 36 to 32, effective from 15 September. The reduction responds to low rainfall caused by El Niño, a pattern of periodic sea surface warming that affects global weather systems. The authority stated the measures are necessary to preserve service reliability and protect water resources for human consumption. Phased implementation begins on 3 September.

The Panama Canal Authority cited the anticipated strength of this year's El Niño, intensified by climate change, as the primary driver for the decision. The authority noted that despite the arrival of the rainy season in Central America and existing water-saving measures at the canal, additional action is required to sustain long-term transit operations. In 2023, the authority reduced vessel numbers during the previous El Niño period after Panama experienced its driest October since records began in 1950. The authority has since introduced further measures to reduce water consumption.

The Panama Canal handles approximately 14,000 ships annually and operates continuously. The waterway significantly reduces travel time and distance for vessels moving between the Atlantic and Pacific oceans, serving as a critical global trade route. According to the authority, the canal generates approximately £2.2 billion annually for Panama. The shipping industry currently faces substantial disruptions from wider geopolitical tensions affecting passage through the Strait of Hormuz.