Panama Canal Cuts Draft to 48 Feet, Limits Transits to 32 as El Niño Dries Watershed
Updated
Updated · CNN · Aug 21
Panama Canal Cuts Draft to 48 Feet, Limits Transits to 32 as El Niño Dries Watershed
3 articles · Updated · CNN · Aug 21
Summary
A 48-foot draft cap will take effect in September, down from the usual 50 feet, as the Panama Canal Authority responds to falling water levels and signals another cut could follow.
Rainfall across the canal watershed has run 34% below historical averages since May, leaving Lake Gatun too low to support normal lock operations during what is expected to be a historically strong El Niño.
Daily crossings will drop from 36 to 34 on September 4 and to 32 by September 15, tightening capacity after August backlogs left dozens of ships waiting and one vessel stuck for more than a month.
Shipping costs are already rising: MSC increased its Panama Canal surcharge, while auction slots that once averaged about $100,000 have recently averaged about $380,000, with one fast-track transit costing $4 million.
The squeeze matters most for the US, which accounts for about 70% of canal cargo and roughly 40% of US-bound container traffic, raising the risk of higher prices for consumer goods and spillover strain on rail and trucking.