Panama Canal to Reduce Shipping as El Niño Strikes Vital Route
Further restrictions on shipping lane possible as Central America gripped by severe drought
TL;DR
- The Panama Canal will decrease the number of daily ship transits from 36 to 34 starting September 3rd, and to 32 from September 15th, due to drought.
- Severe drought, driven by El Niño, has caused rainfall in the canal's watershed to be 34% below historical average.
- The canal handles 5% of global maritime trade and 40% of US container traffic.
- Water conservation measures, including reduced maximum drafts for large ships, have already been implemented.
- This reduction could lead to increased waiting times for ships without reservations, and has previously caused significant delays and higher auction bids.
- Further restrictions are not ruled out, depending on future rainfall.
- Water is a critical resource in Panama, as the canal's feeding lakes supply half the population.
- El Niño is an average weather event occurring every two to seven years, and the current event is one of the strongest on record.