El Nino-linked drought reduces Panama Canal shipping

Strategic waterway trims global trade flows amid worsening Central American drought

Panama Canal to cut daily transits as El Niño grips region

The Panama Canal will reduce shipping volumes from next month because of a drought fueled by the El Nino phenomenon, the operator of the strategic waterway linking the Atlantic and Pacific oceans reported on August 20, 2026.

Panama Canal's operator is to cut the number of vessels passing through the key waterway due to low rainfall caused by El Niño.