Panama Canal to Cut Daily Ship Transit Caps From September 4 Ahead of El Nino Drought

The Panama Canal Authority said on Thursday, August 20, 2026, that to address concerns over lower water levels from the El Nino weather phenomenon, it will cut the daily ship transit cap to 34 vessels starting September 4 (13 Shahrivar), falling further to 32 vessels per day from September 15 (24 Shahrivar). According to Al Jazeera, the canal, which handles about 5 percent of global maritime trade, has averaged 35 daily transits since June, against its usual capacity of about 40 vessels a day.

The move reverses an earlier position, when canal officials told Reuters in May they had no plans to limit crossings this year, citing water conservation measures implemented last year. Al Jazeera noted that a severe 2023 drought, also attributed to El Nino, cut Panama Canal traffic by roughly 36 percent and caused widespread global supply chain disruption; meteorologists expect the coming El Nino to be among the strongest on record.