Panama Canal to Reduce Daily Ship Transits Amid El Niño Drought

The Panama Canal Authority announced on Thursday, August 20, 2026, that it will reduce the number of daily vessel transits through the critical waterway starting in September due to a severe drought fueled by the El Niño weather phenomenon. The restrictions are a response to lower-than-forecast rainfall in the canal's watershed and are intended to safeguard water resources and ensure the long-term sustainability of operations.

Under the new measures, the daily transit cap will be reduced from the current average of 36 vessels to 34 ships beginning September 3. A further reduction to 32 vessels per day will take effect on September 15. The Panama Canal Authority stated that these steps are necessary to preserve service reliability and protect water supplies for human consumption, as the canal relies on freshwater from Gatun Lake, which also provides drinking water to nearby cities, including Panama City.

The decision comes as Central America experiences a severe drought. The government of Honduras placed 80 percent of the country on drought alert earlier in the week. Scientists expect the current El Niño, a naturally occurring pattern of sea surface warming in the Pacific, to be...