The Panama Canal Authority has announced new draft restrictions to prepare for a prolonged drought caused by the El Niño weather pattern. Starting July 24, the maximum draft for transiting vessels will be reduced to 14.94 meters, and then to 14.78 meters on August 15.

The canal depends on water from Lake Gatun, which also supplies drinking water to local communities. With lower rainfall expected, officials must balance water conservation with shipping operations.

The US National Oceanic and Atmospheric Administration (NOAA) confirmed in June that a new El Niño condition is developing and could last until early 2027. Similar conditions in 2023 forced the canal to impose severe restrictions, causing long vessel queues and higher shipping costs.

Industry experts warn that the new limits will reduce cargo capacity for large ships, increase transportation costs, and may push up freight rates during the peak shipping season. The canal authority has advised shipping companies to plan ahead and allow extra time for potential delays.