Panama Canal Authority warns daily transits may drop further as El Niño intensifies

The Panama Canal Authority (ACP) has announced that daily vessel transits could be reduced further to 29 ships per day by early 2027 if rainfall deficits persist across the Gatun and Alajuela lake basins due to a strengthening El Niño phenomenon. Newly appointed ACP Administrator Ilya Espino de Marotta confirmed that daily transits are already being scaled down from 36 to 32 vessels by mid-September 2026, alongside a maximum draft reduction from 15.2 metres to 14.6 metres, forcing ocean carriers to light-load container ships. The water deficit—accumulated rainfall was 35.8% below historical averages between April and August—comes as global shipping relies heavily on the canal as an alternative fallback corridor due to military disruptions in the Strait of Hormuz. With transit slot auction premiums reaching record levels exceeding $5 million per vessel, prolonged draft and slot restrictions threaten to drive up container spot rates and extend transit times across Asia-US East Coast trade lanes, said a report.

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