Panama Canal reduces daily vessel transits due to drought

The Panama Canal Authority has reduced the number of daily vessel transits from 36 to 32 due to severe drought conditions exacerbated by the El Niño phenomenon. Rainfall between May and August decreased by 34 percent compared to historical averages, prompting the reduction in transit capacity.

Ilya Espino de Marotta, the first woman to lead the Authority, has indicated that further restrictions may be necessary if conditions do not improve. To address long-term water security, the Authority is prioritizing a $1.5 billion project to construct a reservoir on the Indio River. This project, expected to be completed between 2031 and 2032, aims to provide drinking water for approximately half of Panama's population and support future canal operations, though it has already faced local protests regarding community relocation.