Panama Canal Cuts Daily Ship Passages to 32 From September 15

Traffic through the Panama Canal will be restricted from September. Because of persistent drought there is insufficient certainty about the amount of water needed to keep all the locks operating normally.

From the start of September, 34 ships a day will be allowed through. On September 15 the maximum drops further to 32 ships. Normally around 36 to 40 vessels a day can sail from the Atlantic to the Pacific, or the other way around.

Four fewer ships a day may not sound world-shattering at first, but on a busy trade route it adds up quickly. With four missed passages a day, more than a hundred ships a month must wait, reroute or adjust their departures.

The measure was announced by the canal's operator. Reuters reports the restriction is linked to a stronger and possibly prolonged El Nino season. The Panama Canal is about 80 kilometers long and connects two oceans. Ships do not simply sail across a flat waterway; they are raised and lowered through several locks. Every passage needs fresh water, which comes from lakes and ultimately flows toward the sea during the locking process. Less rain therefore means not only lower water levels, but also less water to guide ships through the locks.

Between May and August, rainfall in the region was about 34 percent below normal, and the inflow into the watershed lagged about 44 percent behind the long-term average. The canal authority had already reduced the maximum draft for large ships: from September 3, big Neopanamax vessels may draw no more than about 14.48 meters of water.

The restriction is introduced in two steps. Nine daily slots become available at the modern Neopanamax locks, while 25 remain at the older Panamax locks initially. From September 15 that number falls to 23, bringing the canal to a maximum of 32 passages a day.

The route is not being closed, and 32 daily passages still represent a huge amount of cargo. The real risk lies in the drought's duration. If rain stays away and water levels drop further, stricter restrictions may be needed. During the 2023-2024 drought, waiting times soared and shipping companies sometimes paid large sums for priority.

An estimated 3 to 5 percent of global maritime trade passes through this route. Disruption on one major route can push ships and cargo onto other shipping lanes, increasing pressure there as well. For consumers there is no immediate reason to stock up, but for importers, manufacturers and retailers the announcement is a serious warning sign.