Panama Canal authority will cut ships from 36 to 32 a day, starting 15 September, amid low rainfall linked to a powerful El Niño.
Shipping companies received notice on Thursday that the daily limit of vessels will be reduced to 32 from 15 September, down from the current 36.
El Niño, a periodic warming of the eastern tropical Pacific, is forecast to be one of the strongest on record this year, with climate change amplifying its effects.
The industry is already feeling pressure from geopolitical tensions that have trimmed traffic through the Strait of Hormuz.
The Canal Authority said the restriction is required to maintain reliable operations and protect water supplies for local populations.
Even though the Central American rainy season has begun and various water‑saving measures are already in place, the authority said that additional steps are needed to support the long‑term sustainability of transit operations.
Implementation of the new limits will commence on 3 September.
The Panama Canal dramatically shortens the journey between the Atlantic and Pacific oceans. Approximately 14,000 vessels use the waterway each year, which runs 24 hours a day, 365 days.
Beyond its function as a global trade shortcut, the canal generates about $3 billion of revenue for Panama each year.
In 2023, the ACP lowered vessel traffic during the previous El Niño period after Panama faced its driest October on record since 1950. Subsequent measures reduced the canal’s water consumption.
Many experts anticipate that the incoming El Niño could be among the strongest-ever, potentially disrupting weather, food supplies and economies worldwide.
