Panama canal traffic to be cut again as drought from El Niño worsens

A Liberian-flagged container ship transits the Panama canal. A lack of rainfall linked to El Niño has affected the water levels in the canal, resulting in officials reducing daily vessel traffic. Photograph: Enea Lebrun/Reuters View image in fullscreen A Liberian-flagged container ship transits the Panama canal. A lack of rainfall linked to El Niño has affected the water levels in the canal, resulting in officials reducing daily vessel traffic. Photograph: Enea Lebrun/Reuters Panama canal traffic to be cut again as drought from El Niño worsens Latest daily reductions will further choke one of the world’s most important shipping lanes The Panama canal plans to again cut maritime traffic due to worsening drought caused ño climate phenomenon, further choking up one of the world’s most important shipping lanes. The canal handles 5% of global maritime trade and about 40% of US container traffic; it is favoured , especially for companies trading between China, Asia and the US. From October, an average of 29.5 vessels will be allowed to transit daily – down 18% from 36 in August, according to a draft plan submitted to Panama’s parliament. In September, officials cut daily transits from 36 to 32 because of the drought. How Panama canal connects the Caribbean Sea to the Pacific OceanThe US and Israel’s war on Iran, and its disruption to the strait of Hormuz, has complicated logistics and added costs for shipping companies using the canal. In August, with vessels waiting 10 days to enter the canal – the longest since May – a container ship reportedly paid about $4m (£3m) to jump the queue. Maritime companies usually pay a flat fee to reserve a slot to transit the canal, but a daily auction allows shipowners to place bids to skip the queue. Bid prices generally rise during high demand. Shipping restrictions on the canal could yet worsen, with El Niño expected to peak later this year. The natural weather pattern that brings worldwide changes in winds, air pressure and rainfall patterns is forecast to be the strongest in four decades. The 82km-long canal, connecting the Caribbean Sea to the Pacific Ocean, relies on fresh water from rivers pouring into Lake Gatun to operate its system of locks. In September, officials said the watershed had received lower than forecast rainfall. The canal’s locks act like elevators, each filling with water to lift ships 26 metres (85 feet) from sea level to Lake Gatun and then back down to sea level on the other side.