The Panama Canal Authority is preparing to reduce the number of ship transits due to a prolonged drought exacerbated by the El Niño weather pattern. Lower water levels in Gatun Lake, a crucial component of the canal’s lock system, are forcing the restrictions. The Authority will gradually decrease daily transits, potentially impacting global trade and supply chains. Restrictions will primarily affect larger vessels, with draft limitations already in place. The canal authority stated that rainfall deficits are significantly below average, prompting these preventative measures. These changes aim to conserve water and ensure the canal’s continued operation during the dry season, although surcharges for transit are also expected to increase. The situation highlights the vulnerability of this vital waterway to climate change.