The Panama Canal is expected to keep restrictions on vessel transit and maximum draft for at least 10 more months due to a prolonged drought that has lowered the water level. These restrictions began earlier this year and have caused a backlog of vessels waiting to pass. Extending the restrictions would give the canal room to preserve water before the next rainy season arrives. Vessel owners are advised to reserve slots ahead of time to avoid delays.

Some ships, especially bulk carriers and vessels carrying coal have diverted from the waterway because they do not have priority to pass. The backlog of ships has decreased since the canal authority opened two more passage slots per day for non-booked ships. Canal operators are on a tightrope as they work to manage maritime trade disruptions and prepare for an even drier period next year.

• The drought is being caused by a naturally occurring El Nino climate pattern.
• The canal’s authority is working to ease the backlog of ships by opening more passage slots and by prioritizing container ships.
• The canal is a major shipping route for goods that are traded around the world.
• The restrictions on vessel transit and maximum draft could disrupt global trade and increase freight costs.