The Panama Canal, a critical waterway for global trade handling 5% of worldwide commerce, is facing new restrictions on daily transits. These limitations stem from a severe drought impacting the availability of fresh water needed for the canal’s locks. The current drought is exacerbated by the El Niño climate pattern, intensifying water scarcity in the region. Authorities are reducing the number of ships allowed to pass through daily to conserve water levels. This poses potential disruptions to international shipping and supply chains. The restrictions highlight the vulnerability of vital infrastructure to climate change impacts, signaling potential economic consequences for global trade. Further reductions are possible if the dry conditions persist.