PANAMA / RankWire.AI / – The Panama Canal is contemplating further restrictions on daily ship transits due to drought conditions impacting its water sources. According to administrator Ilya Espino de Marotta, the number of vessels could decline to approximately 29 per day in February or March 2027. Any additional reduction would depend on ongoing dry weather and reservoir levels. The waterway is already approaching a limit of 32 transits daily starting September 15.
Capacity cuts began after rainfall and watershed inflows dropped below expected levels during the wet season. Daily crossings initially decreased to 34 before the planned cut to 32. The canal relies on freshwater stored in Gatun Lake and Alhajuela Lake to operate its locks. Each transit involves water to raise or lower ships between the Atlantic and Pacific oceans.
During fiscal 2026, the canal averaged 35 transits per day through June 30. It recorded 10,726 crossings from October to June, representing a 5.2% increase compared to the same period last year. These figures came before worsening rainfall prompted the implementation of new operational limits. The canal remains a vital route for container ships, tankers, bulk carriers, and other vessels supporting international trade.
Reservoir levels influence daily capacity
Water availability has historically dictated how many ships can pass through the canal during dry spells. During the severe drought in 2023, daily transits dropped to 22 in December as Gatun Lake reached exceptionally low levels. Conditions improved after rainfall resumed and water conservation measures aided reservoir recovery. Canal management continues to monitor lake levels, watershed inflows, and precipitation as they determine daily operational capacity.
In addition, officials have modified vessel draft rules as part of current water management strategies. A planned reduction of the Neopanamax draft to 47.5 feet was not implemented after officials reviewed updated reservoir data. The maximum draft remained at 48 feet. Draft limits influence how deeply a loaded ship sits in the water and can impact cargo capacity through the canal.
Booking procedures tighten as transit slots decrease
With fewer daily transit slots available, the canal has updated its booking and auction processes. Auction categories now classify vessels based on cargo type, such as container ships, gas carriers, tankers, and bulk vessels. When other conditions are equal, full container ships with higher capacities are prioritized in some Neopanamax allocations. Canal authorities encourage vessels without reservations to utilize the booking system, as confirmed bookings guarantee scheduled transit dates.
No formal decision has been announced to limit traffic to 29 ships per day. Espino de Marotta noted that this level could be a restriction if dry conditions persist into early 2027. The canal is also progressing with the Río Indio reservoir project, aimed at increasing water storage capacity over the long term. Officials state that this project will support canal operations and improve water supply for a significant portion of Panama’s population.