Panama Canal to limit shipping ahead of extreme weather during El Nino

By Al Jazeera Staff, AFP and Reuters.

Key points

• A severe drought in 2023, for instance, cut traffic through the Panama Canal by roughly 36 percent, leading to disruptions in global supply chains.
• Under the new measures, 34 vessels will be permitted to sail through the canal as of September 4.
• The canal relies on a lock system that lifts and lowers vessels as they travel from the Pacific Ocean to the Caribbean Sea, and vice versa.
• As it prepares for lower water levels due to the El Nino weather phenomenon, the Panama Canal is projected to limit traffic starting in early September.
• The travel restrictions are a reversal for the Panama Canal Authority.

On Thursday, the Panama Canal Authority, the body that oversees the waterway, confirmed that daily transit caps would be set to address worries regarding the drier weather conditions ahead.

Under the new measures, 34 vessels will be permitted to sail through the canal as of September 4. When the limit will be 32 ships, a further reduction will start on September 15.

For context, the travel restrictions are a reversal for the Panama Canal Authority. Authorities informed the news service Reuters in May that they had no intends to limit crossings this year, citing water conservation measures imposed last year.

In practice, the canal, which handles regarding 5 percent of global maritime trade, usually has capacity to accommodate concerning 40 vessels per day. Since June, it has seen a daily average of 35 transits.

Any significant decline in travel through the canal is anticipated to translate into slower international shipping for industries that rely on the waterway. That, in turn, could growth costs.

Meanwhile, a severe drought in 2023, for instance, cut traffic through the Panama Canal by roughly 36 percent, leading to disruptions in global supply chains.

As well as climate change accelerated by human activities, the declining water levels that year were additionally attributed to El Nino.

When the eastern tropical Pacific Ocean is warmer than usual, el Nino is a naturally occurring weather phenomenon that takes place every two to seven years.

While others suffer from flooding, the resulting weather patterns can have an impact throughout the region and even globally, putting some areas at risk of excessive heat and drought.

Scientists expect a particularly solid El Nino in the coming months, potentially among the strongest on record. That could lead to an growth in cases of extreme weather events.

Panama Canal authorities have previously imposed vessel limits so as to conserve water.

Meanwhile, the canal relies on a lock system that lifts and lowers vessels as they travel from the Pacific Ocean to the Caribbean Sea, and vice versa.

But the canal is fed, in part, by freshwater from nearby lakes and reservoirs, most notably Gatun Lake.

Panamanians rely on that lake as well to supply drinking water to nearby cities, including the capital Panama City, putting extra strain on the waterway during times of drought.

Taken together, the developments around panama Canal to limit shipping ahead of extreme weather during El Nino point to a situation that is still moving, and the coming days should bring more clarity.