Panama Canal Faces Decreased Transits Amid Lingering Drought

The Panama Canal may further reduce the number of authorized daily vessel transits if the ongoing drought continues, according to the waterway's administrator. The canal has already restricted vessel draft and daily passage authorizations this year to conserve water, resulting in a backlog of ships waiting to pass through. To alleviate the bottleneck, the canal recently changed its reservation system to allow more non-booked vessels to pass and prioritize ships waiting the longest. Water levels at the Gatun Lake, which feeds the canal, have dropped significantly, and if the drought extends beyond 12 months, additional restrictions may be necessary. Plans are underway to modify water flow and create additional reservoirs to secure enough water for the canal's operations.