The Panama Canal, a critical waterway handling about 5% of global maritime trade, will reduce its daily ship transits starting in September 2026 due to an unusually early dry season and decreased rainfall associated with El Niño.

Canal administrator Ricaurte Vásquez announced that the dry season, typically beginning in December, could start at least a month earlier this year. Additionally, rainfall during the usually wet months of October and November is expected to be below average. As a result, the canal will offer 34 daily transit slots from September 3 before further reducing the number to 32 from September 15. These measures represent the most significant restrictions since droughts in 2023 and 2024 forced sharp traffic limitations.

Steve Paton of the Smithsonian Tropical Research Institute reported that rainfall in the canal watershed since April has been only about two-thirds of the average and continues to decline. He warned that the lake level will "continue to drop and drop when it should be rising," potentially limiting both the frequency of ship traffic and the maximum draft allowed through the canal.

Vásquez emphasized the importance of water conservation, stating, "The water we have - the water we hope to have and that we monitor day by day - is the water we are striving to preserve and use more effectively so that we can provide the best possible service to our customers."

According to a Panamanian maritime industry official, one canal passage currently costs between $50,000 and $100,000 under normal conditions.

Sources