AI Image
Why El Niño has Panama Canal shippers watching the rain
The Weather Channel • • world
Key Points:
- The Panama Canal is experiencing reduced traffic and increased costs due to El Niño, which is causing lower rainfall and water levels in the canal's lakes essential for ship transit.
- The Panama Canal Authority has cut daily vessel transits from 36 to 32 to conserve water, leading to longer wait times and higher prices, with record bids such as South Korea’s SK Gas Ltd. paying $5.3 million for expedited passage.
- Ships without reservations faced delays averaging over 10 days in August, and the alternative route around South Africa’s Cape of Good Hope adds two to three weeks to shipping times.
- El Niño disrupts Panama’s rainy season by causing dry, warm air to reduce rainfall, which is critical for maintaining water levels in Gatún and Alajuela lakes that power the canal locks.
- The 2023 El Niño caused record low water levels and a one-third reduction in canal transits, with climate studies indicating El Niño doubled the chance of low rainfall, and the upcoming 2026 El Niño is expected to be even stronger.
