Panama Canal Recovers as Rainfall Stabilizes Operations

While the Red Sea once again dominates maritime headlines and the Black Sea remains embroiled in conflict, another key global shipping passage has quietly returned to full operational strength.

The Panama Canal, which endured a prolonged drought from 2023 into 2024 due to the El Niño climate pattern, is now functioning at full capacity. According to canal administrator Dr. Ricaurte Vásquez Morales, the canal maintained a 50-foot (15.24 meter) draft during this year’s dry season and is on track to experience a wetter-than-normal rainy season. This sets the stage for more stable operations heading into the next dry season anticipated in early 2026.

“Liquified petroleum gas, and container transits have increased, and dry bulk has recovered from last year,” Vásquez reported during a recent market briefing.

To further enhance the canal’s resilience and throughput, authorities are moving forward with a major $1.6 billion reservoir project. Once completed, this expansion will enable the canal to accommodate up to 15 additional vessel transits each day.

Between June 2023 and September 2024, water shortages in Gatun Lake—critical to canal operations—forced significant restrictions on ship movements. These included limits on vessel drafts and the total number of transits allowed per day. As a result, many ships were rerouted and operators had to compete for scarce transit slots.

With improved rainfall and infrastructure investments now underway, the Panama Canal is poised to regain its role as a reliable conduit for global trade.