The Panama Canal Authority plans to reduce the number of vessels transiting the canal to an average of 29.5 crossings a day from October because of severe drought caused by the El Niño phenomenon, according to a budget bill submitted to parliament.
The authority had already reduced daily crossings from 36 to 32 vessels on Sept. 4 to preserve the water resources needed to operate the canal.
Drought puts pressure on canal resources
Panama declared a nationwide state of emergency because of the El Niño phenomenon, which causes surface waters to warm in the central and eastern tropical Pacific, along with changes in wind patterns, atmospheric pressure and rainfall.
Most forecasts indicate that this year's El Niño will be the strongest since comparable data began to be recorded four decades ago. In 2023, the canal authority reduced daily crossings to 22 vessels because of the phenomenon's effects.
ensuring the canal continues to operate safely, efficiently and profitably
Growing importance to global trade
About 5% of global trade passes through the Panama Canal, increasing its importance amid disruption to shipping through the Strait of Hormuz because of the war between the United States and Iran. About one-fifth of global oil and gas trade passes through the strait.
