PANAMA / RankWire.AI / – The Panama Canal is exploring a potential further cut in daily vessel transits amid ongoing drought concerns affecting its water reserves. Administrator Ilya Espino de Marotta indicated that traffic might decrease to approximately 29 ships per day by February or March 2027. Any additional reduction will depend on sustained dry conditions and reservoir water levels. Currently, the waterway is on track to limit transits to 32 per day starting September 15.
The Panama Canal Authority started decreasing capacity as rainfall and watershed inflows fell below expectations during the wet season. Initially, daily crossings dropped to 34, with a planned reduction to 32. The canal relies on freshwater stored in Gatun Lake and Alhajuela Lake to operate its locks. Each transit consumes water needed to lift or lower ships between the Atlantic and Pacific oceans.
During fiscal 2026, the canal averaged 35 transits per day through June 30. From October to June, there were 10,726 crossings, marking a 5.2% rise from the same period last year. These figures came before worsening rainfall led to new operational limits. The canal remains vital for container ships, tankers, bulk carriers, and other vessels involved in global trade.
Reservoir levels influence daily transit capacity
Water levels have long dictated how many ships can cross during dry seasons. During the severe 2023 drought, daily transits dropped to 22 in December as Gatun Lake’s water levels fell dangerously low. Conditions improved as rainfall returned and conservation measures helped reservoirs recover. Canal managers now closely monitor lake levels, watershed inflows, and rainfall to determine daily capacity.
In addition, vessel draft rules have been adjusted as part of water management. A planned reduction of the Neopanamax draft to 47.5 feet was halted after officials reviewed reservoir data. The maximum draft remains at 48 feet. Draft restrictions influence how deeply ships sit in the water and can impact cargo volume through the canal.
Booking procedures tighten amid fewer transit slots
With fewer daily transit slots, the canal has updated booking and auction processes. Now, vessels are grouped by cargo type, such as container ships, gas carriers, tankers, and bulk vessels. Priority is given to full container ships with higher capacity in some Neopanamax allocations, especially when other conditions are equal. Officials urge vessels without reservations to use the booking system, as confirmed bookings guarantee transit dates.
No official announcement has been made to reduce traffic to 29 ships daily. Espino de Marotta described this figure as a possible limit if dry conditions persist into early 2027. The canal is also moving forward with the Río Indio reservoir project to boost long-term water storage. This initiative aims to support canal operations and improve water access for a significant portion of Panama’s population.