The Panama Canal is easing limits that caused shipping gridlock as severe drought ends and water levels normalize. Last year’s El Niño caused a significant drop in rainfall and forced the canal to implement daily transit restrictions for the first time in history.
The Panama Canal Authority administrator Ricaurte Vasquez told reporters that the draft in the waterway has been increased to a maximum 50 feet allowing 36 vessels a day to transit. The agency expects rains to continue through November, further lifting water levels, he said.
The canal handles 46% of containers moving from Northeast Asia to the US East Coast – about 3% of global maritime trade volumes under normal circumstances.
Vasquez said it should take up to six months for shippers to return in full. About 30 to 32 vessels are currently transiting the waterway, below pre-drought capacity. He said the authority will work with shippers to ensure ships arrive at the canal with the maximum cargo possible.
“The Panama Canal has been resilient,” Vasquez said. “We have to max out together with our customers.”
The agency may need to implement seasonal draft restrictions during the 2025 dry season, which is typically in the first half of the year, but will seek to avoid using daily transit restrictions, Vasquez said.
John S. Connor will continue to monitor The Panama Canal transit conditions.
