Panama Canal restricts vessel transits due to water shortages

The Panama Canal Authority (ACP) is reducing daily vessel transits due to water shortages caused by the El Niño phenomenon. To conserve water in the Gatun and Alhajuela reservoirs—which also provide drinking water to half of Panama's population—daily passages will be reduced from 36 to 34, and further down to 32 starting September 15. Additionally, draft limits for cargo ships will be implemented.

In response to these challenges, the Canal is preparing a 10-year strategic infrastructure plan. Miguel Lorenzo, Vice President of Infrastructure and Engineering, stated that this plan's scope may exceed that of the previous expansion project. Key priorities include addressing water security through projects like the Rio Indio reservoir, developing new port infrastructure to increase container capacity by five million annually, and constructing a gas pipeline.

The current restrictions impact approximately five percent of global maritime traffic, particularly routes connecting Asia to the U.S. East Coast and Europe. Recent auction prices for transit slots have surged, with one South Korean vessel reportedly paying $5.3 million after a 14-day wait.