Increased rainfall is helping to alleviate the severe drought conditions that had forced restrictions on ship passages through the Panama Canal. The Panama Canal Authority (APC) announced it will increase the number of daily booking slots for vessels to 35 in August, up from the previous limit of 24 crossings per day imposed in November 2023. This increase includes 10 Neopanamax crossings (larger locks) and 25 Panamax crossings (smaller locks). Higher rainfall at Gatún Lake, the principal water source for the canal’s operations, has allowed for the easing of restrictions. Water levels are expected to continue improving during the rainy season, which typically lasts from May to December.
The drought-induced limitations had significantly affected global trade routes, with some ships forced to take longer alternative routes. The restrictions led to higher global shipping rates and disruptions in supply chains. APC expects more rainfall during the current rainy season due to an anticipated La Niña event this summer. This could potentially result in a return to normal operations by late summer or early fall.
A recent court ruling has opened the possibility for constructing a new $1.6 billion reservoir to supplement the canal’s water supply. However, this project could take up to six years to complete and requires approval from local communities. Despite the improvements, water levels in Gatún Lake are still lower than historical averages for this time of year.
