What happened
Panama Canal traffic is set for a further reduction as drought linked to El Niño constrains the water available for lock operations. A draft submitted to Panama’s parliament proposes an average of 29 vessel passages a day from October.
The proposed limit would be lower than the 36 daily passages available in August. Authorities had already cut the daily figure from 36 to 32 during the current month because of dry conditions.
The canal carries about 5% of global maritime trade and roughly 40% of US container traffic, according to the report. It is widely used on routes connecting China, other parts of Asia and the US.
Congestion has added to pressure on operators. Vessels waited as long as 10 days to enter the canal in August, the longest delay reported since May. The report also says that a container ship paid about US$4 million to improve its position in the queue through the canal’s daily auction process.
Why it matters
Fewer available passages can raise freight costs and lengthen delivery schedules for companies reliant on the route. Shipowners normally pay a fixed charge for booked transit slots, but can bid for earlier access when demand is high.
The disruption comes alongside transport difficulties associated with the war involving the US, Israel and Iran and disruption around the Strait of Hormuz, the report says. Together, these constraints add complexity for maritime logistics operators.
The supplied material does not set out specific obligations or measures for Turkish or EU businesses. However, companies with cargo moving on Asia-US services using the canal face a tighter transit capacity and potential scheduling risk.
Background
The 82-kilometre canal links the Caribbean Sea and the Pacific Ocean. Its lock system depends on freshwater flowing into Gatun Lake. Locks lift ships to the lake, about 26 metres above sea level, before lowering them on the other side.
Lower lake levels can prevent the largest vessels from passing safely. The Panama Canal Authority then limits traffic to preserve water and maintain safe operations. In 2023, daily passages were reduced from 38 to 22 after water levels in the canal’s supplying lakes fell sharply.
Officials said in September that rainfall across the canal basin had been below expectations. El Niño is expected to intensify later in the year, increasing the risk of further restrictions.
What's next
The proposed average limit of 29 daily transits is due to begin in October. Further decisions will depend on rainfall in the Gatun Lake catchment and the progression of El Niño-related dry weather.
