Panama Canal weighs further transit cuts amid El Niño

PANAMA CITY (AFP) — The Panama Canal could further reduce the number of ships allowed to pass through the waterway as El Niño-driven drought lowers reservoir levels, its new administrator said Monday.

The canal, which handles about 5 percent of global maritime trade, has already cut its maximum daily transits from 36 last month to 32 by mid-September.

Ilya Espino de Marotta, who took over as head of the Panama Canal Authority on Monday, said additional restrictions could be imposed if drought conditions persist.

“We do not rule out the possibility that in February or March we may have to lower the limit — probably not to 24 slots per day, but it could be reduced to 29 or something similar,” she said.

The canal relies on rainwater stored in two reservoirs to operate locks that lift and lower ships during crossings. Each vessel requires about 200 million liters of water.

Authorities have also reduced the maximum draft for vessels from 15.2 meters to 14.6 meters.

In 2023, El Niño conditions forced daily transits to fall from 38 to 22, though Espino de Marotta said she does not expect restrictions to reach those levels this time.

Traffic through the canal has risen as shippers seek alternatives to the Strait of Hormuz, which Iran has blocked amid the war with the United States and Israel.