Panama Canal Authority Cuts Daily Transits Starting in September

Overview

• The Panama Canal Authority announced on Thursday that daily transits will fall from 36 to 34 in early September and to 32 on September 15 to conserve water for lock operations.
• The Authority said rainfall from May through August was about 34 percent below the historical average and warned the 2026–2027 El Niño could worsen shortages in the canal watershed.
• Canal congestion is already severe with June averaging 35 crossings versus capacity near 40 and some ships waiting up to 17 days, which has pressured shippers to seek alternatives.
• Operators are adapting by using transshipment, narrower Panamax locks, swapping cargo between vessels and paying record surge fees that reached about US$4.6 million for immediate Neopanamax passages.
• The cuts raise costs and risks for global trade because the canal handles roughly 5 percent of seaborne commerce and higher US-to-Asia energy flows are intensifying demand for larger Neopanamax tankers.