The operator of the Panama Canal, one of the world's most important waterways, will reduce the number of ships passing through it due to a lack of rainfall caused by El Niño. The shipping industry is already facing severe disruption due to the war with Iran, which has led to a sharp decline in the number of ships passing through the strategic Strait of Hormuz. Restrictions on ship passage through the Panama Canal will add pressure to the global economy, but it is not yet clear to what extent.
The Panama Canal Authority (ACP) notified shipping companies on Thursday that 32 ships per day will be able to pass through the canal starting September 15, up from the current 36.
The department explained that these measures are being introduced to ensure the reliability of the canal and to protect water reserves intended for public consumption.
The ACP added that despite the onset of the rainy season in Central America and measures already taken to conserve water in the canal, additional action is needed “to ensure the long-term sustainability of transit operations.”
The new restrictions will be introduced in stages starting September 3.
The Panama Canal is of great importance for global freight transport. It significantly reduces the time and distance that ships have to travel when crossing between the Atlantic and Pacific oceans.
About 14 thousand ships use this artificial waterway every year. The channel operates 24 hours a day, 365 days a year.
In addition to its key role in global trade, it is an important source of income for Panama, bringing in about $3 billion annually to the country.
Nature threatens the economy
El Niño is a periodic increase in ocean surface temperatures that influences weather patterns around the world. It is expected to be particularly severe this year, with climate change further exacerbating its effects.
In 2023, during the previous El Niño period, the administration was already reducing the number of ships passing through the canal after Panama experienced its driest October since records began in 1950.
Since then, the canal authorities have taken measures to reduce water consumption.
According to many forecasts, the current El Niño could be one of the strongest on record, causing severe disruption to weather patterns, food supplies and global economic activity.
Apple of discord
The Panama Canal was built largely with US money and officially opened in 1920. For many years it was under American control, but in 1999 Washington transferred full control of the canal to Panama.
However, at the very beginning of his second presidential term, Donald Trump threatened to return the canal to US control, citing too high tariffs for the passage of American ships.
He also stated that in recent years the canal has been de facto owned by China, which controls key ports along the entire length of the canal.
In December 2024, he said the Panama Canal "should have been managed solely by Panama, not by China or anyone else." “We will never allow it to fall into the wrong hands!” - Trump said then.
“The channel has no control, direct or indirect, neither from China, nor from the European Union, nor from the United States or any other power,” responded Panamanian President José Raúl Mulino.
