# Panama Canal traffic up, El Niño prep, energy corridor > Live situation record from CLSTR: https://clstr.news/situations/panama-canal-el-nio-response > Updated: 2026-08-11T19:58:09.000Z. Sources: 45. Developments: 14. In early June, the Canal Authority began reviewing a modest 15-centimetre draft cut for Neopanamax ships and drafted an operational plan that pairs small vessels, adds water-saving basins and temporarily curtails hydro-electric output to guard Gatun-Lake levels ahead of the 2026 El Niño. Mid-month, the historic Gatun locks entered a dry-chamber overhaul, replacing valves and refurbishing gates to curb the 55 million-gallon water loss per lockage and to ready the system for the forecast drought. June 26 marked the 10-year anniversary of the 2016 expansion, with the newer Agua Clara-Cocolí locks now handling over half of the canal’s cargo tonnage and FY 2025 revenue rising 14% to $5.7 billion. The same day, the Authority projected fiscal-2026 earnings above the $5.2 billion forecast, buoyed by a Hormuz Strait closure that pushed daily transits to a record 40-41 ships and spurred higher LNG and oil-tanker traffic. July saw traffic normalize to 36-37 vessels as the Middle-East crisis eased, while the pre-qualification window closed for two new container-terminal projects at Corozal and Telfers. A surge later in the month brought daily transits back to near-capacity (36-40) and lifted total transits to 10,726 for the first nine months, up 5.2% year-on-year, with revenues up 17% to $4.8 billion. The Energy Corridor pre-qualification period officially ended on 23 July, moving proposals to the evaluation phase. In August, the Authority announced further progressive reductions in maximum drafts for Neopanamax vessels to manage Gatun Lake levels. The maximum draft will be lowered to 14.63 m (48 ft) starting 26 August and further decreased to 14.48 m (47.5 ft) from 3 September. These represent the fourth and fifth draft adjustments since December 2025 as part of water resource conservation measures to prepare for the 2026 dry season. ## Claims - The El Niño phenomenon has caused lower-than-expected rainfall, leading to reduced water levels and draft restrictions in the canal. (corroborated by 7 sources) - The container ship Seaspan Benefactor paid US$4 million in a confidential auction to bypass a queue at the Panama Canal. (corroborated by 6 sources) - Traffic through the Strait of Hormuz has significantly decreased due to the conflict with Iran, diverting ships to the Panama Canal. (corroborated by 6 sources) - The Panama Canal Authority attributed rising auction costs to shifts in global trade supply and demand. (corroborated by 4 sources) - Neopanamax vessels without reserved slots face wait times of approximately 10 days. (corroborated by 4 sources) - The Panama Canal is experiencing its highest level of congestion for Pacific-to-Atlantic transit since May. (corroborated by 2 sources) ## Timeline ### 2026-08-11: Panama Canal congestion surges as shipping firms pay millions to bypass queues The Panama Canal faces extreme congestion and record-high auction fees as ships divert from the Strait of Hormuz and El Niño-induced droughts restrict water levels and transit slots. 11 sources. https://clstr.news/cluster/panama-canal-ship-pays-4-million-to-bypass-queue ### 2026-08-11: Panama Canal to reduce maximum draft for Neopanamax vessels The Panama Canal will progressively reduce the maximum draft for Neopanamax vessels to manage Gatun Lake water levels in preparation for the 2026 dry season. 2 sources. https://clstr.news/cluster/panama-canal-to-reduce-maximum-draft-for-neopanamax-vessels ### 2026-08-05: Panama Canal Tightens Draft Limits Amid Low Water Levels The Panama Canal will lower Neopanamax draft limits to 14.63 m from Aug 26 and 14.48 m from Sep 3 due to low water levels, El Niño effects and watershed conditions, while keeping ship transit numbers unchanged. 7 sources. https://clstr.news/cluster/panama-canal-tightens-draft-limits-amid-low-water-levels ### 2026-07-24: Panama Canal closes prequalification window for Energy Corridor pipeline projects Panama Canal Authority closed the 23 July 2026 deadline for Energy Corridor pre‑qualification, moving to evaluate submissions for a proposed 76‑km LPG pipeline that aims to diversify the canal’s business. 10 sources. https://clstr.news/cluster/panama-canal-sees-traffic-rise-and-opens-energy-corridor-prequalification ### 2026-07-21: Panama Canal reports record transits and readies for El Niño Panama Canal’s FY 2026 transits rose 5.2 % to 10,726, cargo up 7.2 %, revenues $4.8 bn (+17 %); net income $3.6 bn (+19 %). Officials prepare for an 81 % El Niño likelihood, eyeing possible operational limits. 3 sources. https://clstr.news/cluster/panama-canal-reports-record-transits-and-readies-for-el-nio ### 2026-07-21: Panama Canal traffic surges amid Middle East conflict Panama Canal usage nears capacity after Hormuz closure, with daily transits hitting 36‑40 and LNG tanker traffic nearly doubling, highlighting its growing strategic role. 2 sources. https://clstr.news/cluster/panama-canal-traffic-surges-amid-middle-east-conflict ### 2026-07-08: Panama Canal traffic returns to normal as Ormuz crisis eases; port terminal precalification documents deadline met Panama Canal traffic has reverted to normal after earlier peaks from the Hormuz crisis, and the authority closed the document submission phase for precalification of two new container terminals. 3 sources. https://clstr.news/cluster/panama-canal-traffic-returns-to-normal-as-ormuz-crisis-eases-port-terminal-precalification-documents ### 2026-07-08: Panama approves $4.44 million tech upgrade for Colón Free Zone Panama’s cabinet green‑lights a $4.44 million contract with Sonda S.A. to modernise the technology of the Colón Free Zone, replacing a ten‑year‑old system critical for $25 billion‑plus annual trade. 2 sources. https://clstr.news/cluster/panama-approves-444-million-tech-upgrade-for-coln-free-zone ### 2026-07-01: Panama Canal hits 31,000 Neopanamax transits as US warns China over control Panama Canal’s expansion marks 31,000 Neopanamax transits, while Donald Trump warns the U.S. won’t let China control the strategic waterway. 2 sources. https://clstr.news/cluster/panama-canal-hits-31000-neopanamax-transits-as-us-warns-china-over-control ### 2026-06-26: Panama Canal Revenue Beats Forecast as Hormuz Closure Drives Ship Traffic Panama Canal revenue for fiscal 2026 is set to surpass $5.2 billion after Hormuz closure boosted ship traffic, with incoming chief Ilya Espino de Marotta overseeing $8.5 billion of new projects. 2 sources. https://clstr.news/cluster/panama-canal-revenue-beats-forecast-as-hormuz-closure-drives-ship-traffic ### 2026-06-26: Panama Canal marks 10‑year anniversary of expansion with record traffic and revenue Panama Canal celebrates a decade of its $5.25 bn expansion, which added a third lock set, boosted capacity to 17,640 TEU ships, generated $5.7 bn in FY2025 revenue, and faces water‑scarcity challenges. 7 sources. https://clstr.news/cluster/panama-canal-expansion-drives-record-capacity-and-revenue-growth ### 2026-06-15: Panama Canal begins dry‑chamber overhaul of historic Gatun locks Panama Canal began an eight‑day dry‑chamber overhaul of the historic Gatun locks, replacing valves and refurbishing gates 33‑34 to curb water loss and ready the system for El Niño. 2 sources. https://clstr.news/cluster/panama-canal-begins-drychamber-overhaul-of-historic-gatun-locks ### 2026-06-06: Panama Canal Authority prepares operational plan to offset El Niño impacts on ship transits The Panama Canal Authority plans to offset the 2026 El Niño impact with operational tweaks and water‑saving measures, aiming to keep ship transits stable through 2026 and prepare for possible restrictions in 7‑ 2 sources. https://clstr.news/cluster/panama-canal-authority-prepares-operational-plan-to-offset-el-nio-impacts-on-ship-transits ### 2026-06-05: Panama Canal Authority reviews draft limits amid El Niño water risk Panama Canal Authority will lower the draft for Neopanamax ships by about 15 cm as El Niño threatens water levels, potentially cutting hundreds of containers per vessel and raising shipping costs. 2 sources. https://clstr.news/cluster/panama-canal-authority-reviews-draft-limits-amid-el-nio-water-risk --- Cite as: Panama Canal traffic up, El Niño prep, energy corridor. CLSTR, https://clstr.news/situations/panama-canal-el-nio-response