Graphic: the route of the Panama Canal.

Low water levels in the Panama Canal were made worse by El NiƱo

By Shipping Australia

The weather system known as “El NiƱo”, led to lower water levels in the Panama Canal, an international group of weather-scientists has concluded in a new paper.

In their study, “Low water levels in Panama Canal due to increasing demand exacerbated by El NiƱo event,” by C Barnes of the Imperial College, London, et al, the scientists concluded that low rainfall during the 2023 rainy season (May-December) contributed to “extremely low water levels in Lake Gatun”, despite an above-average water level at the beginning the year.

The scientists observed that, although there is some evidence of a drying trend, there was neither climate model data nor a strong physical argument to support a hypothesis that there is drying in the Panama Canal watershed area that is driven by human-induced climate change. Further research is needed to understand the mechanisms driving reduced rainfall in this region and whether they are linked to global warming.

One of the driest years on record was experienced by the Republic of Panama in 2023 with rainfall in the Panama Canal Watershed – the source of 100% of the water used by the Panama Canal – below average for all but one of the eight months that make up Panama’s rainy season.

The researchers noted that rain in Panama is “strongly influenced: by the El NiƱo Southern Oscillation (ENSO) system. It is a complex system driven by the trade winds, sea surface temperatures, and an upwelling of cool water from the deep ocean. The system is generally said to have two main phases – a “La NiƱa” phase, which tends to lead to storms and heavy rain, and an “El NiƱo” phase, which is dryer.

It was found by the researchers that urban expansion, population growth, and aging infrastructure that loses “significant” amounts of water through leaks, are increasing pressures on water supplies. Gatun Lake – a key part of the shipping route – supplies water to the Panama Canal and it also provides drinking water to about 2.25 million people. The researchers noted that the Panama Canal Watershed supplied about 55% of Panama’s total population need and 95% of the safe drinking water for several ofĀ  the Panama’s largest population centres. The Pacific slope of the country is inhabited by 83% of the country’s population – including Panama City, San Miguelto, La Chorrera, Arrijan and Capira. Population in the region is forecast to increase by 12.5% to 4.6 million in 2050, “putting greater pressure on Panama Canal’s municipal water demand if resilience is not improved”.

“Projections show water demand will increase more than double by 2050 compared to 2015 levels, potentially putting a strain on water security (ibid). At the same time, roughly 42% of the potable water produced is lost, due mostly to leaks, which suggests infrastructural opportunities for improvements in the water distribution system,” the researchers said.

“Urban expansion and unsustainable agriculture exacerbate land degradation in the Panama Canal Watershed, and the increased population strains natural resources, especially drinking water, heightening the impact of low rainfall in the region. While initiatives exist to increase the efficiency of water usage through the ACP’s work with farmers on combating inefficient irrigation use, for example, there is an opportunity to do more to increase efficiency, especially as roughly 42% of the potable water produced is lost in the water distribution system,” the researchers concluded.

Global shipping has been affected by the low water levels, with the Panama Canal Authority announcing that the number of transit slots for the Canal would eventually be reduced to about 18 slots per day. Transits were actually reduced down to 24 slots per day, leading to queues and delay and, potentially, up to 4,000 fewer Panama Canal crossings according to McKinsey & Company.

However, the Panama Canal Authorities now expect to see normalisation by 2025.

Facebook
Twitter
LinkedIn
Email

Search

Become a Member

Membership is open to all ship owners, operators and agents both Australian and International providing services to or within Australia.

Upcoming Events

Oct 10
Industry Gala Night 2026
Industry Gala Night 2026 – A Masquerade Affair Shipping Australia Limited Queensland is delighted to announce the return of our highly anticipated Industry Gala Night 2026. Following the outstanding success of last year’s sold-out event, we are excited to once again bring together industry leaders, valued partners, sponsors, and supporters for an unforgettable evening of...
Sep 3
SAL’s New South Wales State Committee Spring Luncheon
PROUDLY SPONSORED BY MAIN SPONSORĀ  SUPPORT SPONSORĀ    GUEST SPEAKER The Hon. Natalie Ward MLC Shadow Minister for Transport and Roads Deputy Leader of the Liberal Party Sydney Harbour Marriott on Pitt Street, Sydney CBD Thursday, 3 September 2026 1200hrs for 1230hrs  

Latest News

FONASBA’S annual meeting to take place in Tokyo in October!
This year in Tokyo, FONASBA’s 2026 Annual Meeting (11-14 October) programme will feature engaging plenary sessions with leading international and local speakers, exploring current challenges and opportunities in shipping, logistics, and maritime policy. There will be ample opportunity for networking, allowing participants to build new relationships and deepen existing ones. We are especially pleased to...
Shipping Australia is disappointed with Pilbara Ports fee hikes and non-transparency, and the lacking response of Western Australian Ports Minister Dawson
Shipping Australia is disappointed with the ongoing fee hikes at the Pilbara Ports Authority and the response of the Hon Stephen Dawson MLC, WA Minister for Ports. Shipping Australia is also disconcerted by the ongoing fee hikes for services across Australian ports, which are often large, imposed out-of-cycle, and at short notice. In relation to...

Latest Magazine

Shipping Australia Winter 2026
June, 2026

Subscribe to the Signal Newsletter

Be the first to know about releases and industry news and insights or catch up on any editions you missed.

Search