Panama Canal Slashes Daily Ship Passages as El Nino Drought Bites

The Panama Canal has announced a reduction in the number of vessels allowed to pass through it each day, a direct consequence of a severe El Nino weather event. The measure is a response to the drought conditions that have significantly lowered water levels in the artificial lakes feeding the canal's lock system.

Each ship transit through the canal consumes millions of gallons of fresh water, which is used to raise and lower vessels between the Atlantic and Pacific Oceans. With rainfall scarce and reservoirs depleted, the canal authority has been forced to ration this vital resource.

The cut in daily transits is expected to have ripple effects on global supply chains. The canal is a critical chokepoint for trade, particularly for cargo moving between Asia and the US East Coast, as well as for shipments of liquefied natural gas from the US to Asia.

Shipping companies may face longer waiting times or be forced to seek alternative, often longer and costlier, routes. The situation highlights the vulnerability of key maritime infrastructure to the impacts of extreme weather patterns, with the current El Nino proving particularly disruptive to the region's water supply.