The Panama Canal Authority (ACP) will reduce the number of vessels allowed to transit the waterway each day from September as below-average rainfall and strengthening El Niño conditions raise concerns over water availability.
From September 3, 2026, daily vessel capacity will fall from the current 36 transits to 34, before being reduced further to 32 vessels per day from September 15.
Under the first phase of restrictions, the Neopanamax locks will be limited to nine daily transits, while the older Panamax locks will handle up to 25 vessels per day. From September 15, Panamax capacity will fall further to 23 daily slots.
The measures come after rainfall across the canal watershed between May and August was 34% below average, while water inflows were down 44%. The ACP said the measures are intended to protect the long-term sustainability of the waterway and its water resources.
The latest restrictions represent a reversal of the more optimistic outlook earlier this year, when canal authorities had indicated that vessel transit restrictions were not expected during 2026. The return of water-related constraints highlights the canal’s continuing vulnerability to changing weather patterns.
The Panama Canal depends on freshwater from its watershed and artificial lakes to operate its lock system. Extended drought during the 2023-24 El Niño period previously forced the authority to impose significant reductions in daily transits and vessel draft limits, disrupting global shipping schedules.
The ACP is also changing its transit-slot auction system from September 3. Vessels will be divided into groups based on cargo type, including LNG and LPG carriers, dry bulk and general cargo vessels, containerships and refrigerated vessels, and tankers.
The reduced capacity could increase competition for transit slots and create longer waiting times for vessels without confirmed reservations. Shipping lines may need to adjust schedules, cargo planning and routing strategies if the restrictions persist.
For global trade, the Panama Canal remains a critical shortcut between the Atlantic and Pacific oceans, particularly for container shipping, energy products, agricultural commodities and other bulk cargoes. Any sustained reduction in capacity could therefore increase pressure on alternative routes and add to transportation costs.
The latest action underscores the growing importance of water-resource management for the canal and the wider shipping industry. If rainfall remains weak and El Niño conditions intensify, the authority has indicated that additional measures could be required to safeguard canal operations.