Panama Canal Transits Cut to 34 a Day as Drought Tightens Shipping Again
PANAMA · ECONOMY
Key Facts
—What happened: The Panama Canal cuts daily transits from 36 to 34 ships on Thursday 3 September as drought returns.
—How deep: A second cut to 32 daily transits follows on 15 September, with big-ship slots down from ten to nine.
—The price signal: A Korean gas carrier paid a record US$5.3 million last week just to skip the queue.
—The catch: Ships keep deeper loading limits for longer, so the water saving comes from fewer vessels, not lighter ones.
—Who pays: Peruvian exporters say auction slots averaging US$1.1 million are already inflating their freight bills.
—What comes next: Auction prices are expected to climb when the canal’s new four-group slot system starts on 3 September.
Panama Canal transits fall from 36 ships a day to 34 on Thursday 3 September as drought returns to the watershed. A record US$5.3 million slot auction and complaints from Peruvian exporters show the squeeze has already begun.
What changes on the Panama Canal this week
The Panama Canal Authority set the timetable in two customer advisories on 20 August. Advisories A-28-2026 and A-29-2026 cut daily Panama Canal transits from 36 to 34.
The first cut lands on Thursday 3 September. The Neopanamax locks, which take the biggest ships, drop from ten daily slots to nine.
The older Panamax locks go from 26 slots to 25. A second cut follows on 15 September, when Panamax capacity falls to 23 and daily transits to 32.
A separate restriction actually arrives first, on Wednesday 2 September. The maximum draft for Neopanamax ships falls to 14.63 metres, or 48 feet.
Draft is how deep a ship sits in the water, and it caps how much cargo a vessel can carry. A deeper cut to 14.48 metres has been postponed until 1 October.
Rain across the canal watershed has stayed below expectations despite the rainy season. Gatún Lake, the reservoir that feeds the locks, is lower than the authority planned for.
The booking system loosens before it tightens
The canal also reorganises its daily slot auction as Panama Canal transits tighten. From 3 September, available slots split into four vessel groups to spread capacity across market segments.
The first group covers liquefied natural gas (LNG) and liquefied petroleum gas (LPG) carriers. Dry bulk and general cargo ships form the second.
Container ships, vehicle carriers and refrigerated vessels make up the third. Chemical tankers and crude or product tankers take the fourth.
Customers who already hold a slot through long-term allocation programmes generally cannot book a second one for the same date. That limit does not apply to slots won at auction.
For the Neopanamax locks, full container vessels with the highest capacity get priority. Capacity here means twenty-foot equivalent units, or TEU, the standard shipping container measure.
The practical effect is subtle but real. More ship types can reach the auction, while the biggest carriers keep their edge.
A record US$5.3 million just to skip the queue
The pressure showed in plain numbers last week. South Korea’s SK Gas paid US$5.3 million at auction on 25 August for a priority northbound slot.
The slot was for the G. Spirit, a very large gas carrier scheduled to transit on 1 September. Bloomberg reported it as the highest bid ever recorded for a canal transit slot.
The winning offer topped a rival bid of US$4.6 million, according to shipping outlet Data Portuaria. It is the kind of number that turns a scheduling nuisance into a boardroom problem.
The escalation has been fast. Average auction prices were about US$55,000 earlier this year, Prensa Latina reported, and passed US$1 million in August, per La Estrella de Panamá.
Only one slot a day goes under the hammer. Brokers expect auction prices to climb further once Panama Canal transits fall this week.
Why Peru is already counting the cost
The bill is landing far from Panama. Peruvian trade outlet MasContainer warned on 31 August that the canal crisis is inflating the country’s foreign trade costs.
Auction slots averaged about US$1.1 million in recent weeks, it reported. Shipping lines pass those costs on to cargo owners as surcharges.
Peru matters here because of geography. Its exporters send fruit, minerals and fishmeal to the United States East Coast and Europe, much of it through the canal.
For readers with supply chains in the Andean region, the signal is simple. Budget for higher freight rates on any route that crosses the isthmus this quarter.
What to watch from here
The canal carries roughly 6 percent of global maritime trade. The last big drought, in 2023 and 2024, produced queues, rerouting and a spike in freight costs.
Forecasters expect the current El Niño pattern to suppress rainfall into 2027. That makes further cuts plausible rather than remote.
With Panama Canal transits down and auction demand up, waiting times for unbooked ships should grow. The authority stresses that a confirmed reservation is still the only guaranteed crossing date.
One pressure valve stays open. If conditions force a suspension of the reservation system, cancelled slots carry no penalty or surcharge.
The drought is reaching the courtroom as well. Panama’s government is already funding its legal defence as arbitration claims tied to the crisis pile up.
Frequently Asked Questions
When do Panama Canal transits fall to 34?
Daily transits drop from 36 to 34 on Thursday 3 September 2026, then to 32 from 15 September. A tighter draft limit for the biggest ships takes effect a day earlier, on Wednesday 2 September.
Why is the canal cutting transits again?
Drought linked to the El Niño climate pattern has left the lakes that feed the canal lower than expected, despite the rainy season. The authority is cutting traffic to save water.
What was the record canal toll?
South Korea’s SK Gas paid US$5.3 million at auction on 25 August 2026 for a priority slot for the gas carrier G. Spirit. Bloomberg reported it as the highest bid ever recorded.
How are Peruvian shippers affected?
Trade outlet MasContainer reports that auction slots averaging about US$1.1 million are raising freight costs for Peru’s foreign trade. Exporters pay through carrier surcharges.
What changes in the canal’s booking system?
From 3 September, auctioned slots split into four vessel groups so capacity spreads across market segments. Customers holding long-term allocations generally cannot double-book, but auction slots are exempt.
Connected Coverage
We covered the record bid in Panama Canal Transit Slot Sells for Record US$5.3 Million and the original cap announcement in Panama Canal Caps Daily Ship Transits From September. The legal fallout of the drought runs through Panama Sets Aside Millions for Legal Defence as Arbitration Claims Pile Up.
Sources: Panama Canal Authority (Advisories A-28-2026 and A-29-2026), Bloomberg, Euronews, Breakbulk.News, Data Portuaria, MasContainer, La Estrella de Panamá, Prensa Latina.
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