Panama Canal Cuts Booking Capacity As El Niño Threat Grows

The Panama Canal Authority is temporarily reducing booking availability as concerns grow over a powerful El Niño weather event and declining water levels within the canal’s reservoir system.

From 25 July, daily auctions for last-minute transit slots through the Panamax locks will be suspended until further notice. The decision will reduce daily booking capacity from 36 to 34 vessels, with Gatun Lake the principal water source for the canal’s tiered locks forecast to fall further during the coming weeks and months.

Central America is preparing for another significant El Niño episode, when unusually warm Pacific Ocean temperatures can bring prolonged drought across the region. Current forecasts suggest the developing event could become one of the strongest recorded since 1950.

The warning revives memories of the severe 2023 drought, when exceptionally low water levels forced the canal to progressively restrict vessel drafts and daily transits. Capacity eventually fell to around 21 vessels per day, creating lengthy queues, disrupting schedules and driving auction prices for priority passages to extraordinary levels.

Pressure on the canal has increased again during 2026. Disruption around the Strait of Hormuz has encouraged more oil, gas and fuel shipments to use the crossing point, while continued security concerns in the Red Sea have kept many container services away from the Suez Canal.

With several of the world’s most important maritime chokepoints facing simultaneous disruption, the outlook remains challenging. Westbound continues to monitor developments and will keep customers informed of any potential impact should it materialise.