PANAMA / RankWire.AI / – The Panama Canal is weighing another reduction in daily vessel transits because of increasing pressure from drought affecting its water reserves. Ilya Espino de Marotta stated that traffic could decrease to approximately 29 ships daily during February or March 2027. Any additional cut would depend on ongoing dry conditions and the status of reservoir levels. The waterway is already moving toward a cap of 32 transits per day starting from Sept. 15.
The Panama Canal Authority began reducing its capacity after rainfall and watershed inflows fell below expected levels during the rainy season. Daily crossings initially dropped to 34 before the planned reduction to 32. The canal relies on freshwater stored in Gatun Lake and Alhajuela Lake to operate its locks. Every transit involves water to raise or lower vessels between the Atlantic and Pacific oceans.
During fiscal 2026, the canal averaged 35 transits per day up to June 30. From October to June, there were 10,726 crossings, representing a 5.2% increase compared to the same period last year. These numbers were recorded before worsening rainfall prompted new operational limits. The canal remains a crucial route for container ships, tankers, bulk carriers, and various other vessels supporting global trade.
Reservoir levels influence daily transit capacity
Water availability has always dictated the number of ships that can pass through the canal during dry spells. During the severe drought of 2023, daily transits dropped to 22 in December as Gatun Lake’s levels fell to unusually low points. Conditions improved after rainfall resumed, and water conservation efforts helped reservoirs recover. Canal managers continue monitoring lake levels, watershed inflows, and precipitation when determining daily operational capacity.
Officials have also changed vessel draft rules as part of current water management strategies. A planned reduction of the Neopanamax draft to 47.5 feet was postponed after officials reviewed updated reservoir data. The maximum draft remained at 48 feet. Draft limits impact how deeply a loaded ship sits in the water and can affect the volume of cargo carried through the canal.
Fewer transit slots lead to tighter booking and auction procedures
As daily transit slots become scarcer, the canal has revised its booking and auction procedures. The auction categories now separate vessels based on cargo types, such as container ships, gas carriers, tankers, and bulk vessels. Priority in some Neopanamax allocations is given to full container ships with higher capacity when other factors are equal. Canal officials are urging vessels without reservations to use the booking system, as confirmed bookings guarantee scheduled transit dates.
No official decision has been made to reduce daily traffic to 29 ships. Espino de Marotta described that number as a potential restriction if dry conditions persist into early 2027. The canal is also progressing with the Río Indio reservoir project to expand its long-term water storage capacity. Authorities state that this project will support canal operations and enhance water supply for a significant portion of Panama’s population.