ports

Panama Canal Authority Reinstates Transit Restrictions Ahead of Severe El Niño

The Panama Canal Authority will reintroduce transit restrictions as forecasters predict one of the most severe El Niño weather events on record. Canal administrator Ricaurte Vásquez said the probability of a severe El Niño has surged to 81% from 25% in April. This prompted the authority to activate preventive measures based on the 2023-2024 event. The canal faces potential capacity cuts through draft limitations and reduced daily booking slots. The prior El Niño drought, spanning mid-2023 to mid-2024, cut capacity by as much as 50%, halving daily transits from the design capacity of 36 to 18. Vásquez cautioned that timing and scope of restrictions will depend on market conditions. The authority has already begun tightening capacity, cancelling this week's Period 3 auctions at Panamax locks, which normally allow bookings 48-96 hours before transit.