The Panama Canal Authority (ACP) said it would reduce daily vessel transits in the major waterway from July 30, 2023, citing low water levels due to prolonged dry spells.

The Panama Canal — one of the busiest shipping lanes in the world — announced that the measure had been implemented because changes in precipitation patterns are "expected to affect the availability of water in Panama as part of a global phenomenon and due to a high probability of an El Niño condition before the end of this year."

"Given the prolongation of the effects of the dry season and fulfilling its responsibility to offer a reliable and sustainable service, the Panama Canal informed its clients that, as of this date, it will maintain a draft of 44 feet or 13.41 meters during the coming months, as long as weather conditions do not vary significantly from our current projections," ACP said an advisory to shippers. 

"Consistent with this draft, together with this temporary condition, transits will be allowed in an average of 32 vessels per day," it added.

This would consist of 10 vessels in the neo-Panamax locks and 22 vessels in the Panamax locks.

According to recent data, the Panama Canal has the capacity to accommodate around 38-40 vessels per day, which includes both the Panamax and expanded neo-Panamax locks. However, on average, only 34-38 vessels transit through the canal each day.

In the last two months — May and June — however, the canal saw a decrease in the average number of transits, with only 32.58 and 32.13 vessels crossing per day due to low water level issues.

The Canal said it has been implementing procedures to improve water efficiency at its operations while conducting studies to identify long-term solutions to climate variability. 

"However, the current severity in conjunction with its recurrence is without historical precedent," it added.

ACP has stated that if the daily transits of the Panama Canal decrease for a prolonged period, it will result in vessels without reservations experiencing longer waiting times.

"In that regard, we strongly encourage all customers to make use of our Transit Reservation System to reduce the possibility of extensive delays," it added.

The ACP noted that it may implement additional measures and establish additional procedures commensurate with the safe and efficient operation of the Canal. 

The principal trade routes served by the Panama Canal run between the US east coast and East Asia.