By: Staff Writer
June 12, 2026
The Panama Canal Authority (ACP) has announced a reduction in the maximum authorised draft for vessels transiting its Neopanamax locks, a move likely to rekindle concerns across global shipping about a repeat of the severe disruption experienced during the canal’s last drought crisis.
Reducing the maximum authorized draft for vessels transiting through its Neopanamax locks to 49.5 feet (15.09 meters) starting July 1st, according to the notice sent to shipping companies, will cause for smoother transition through the canal.
The canal authority has indicated that the adjustment is based on current and projected levels of Gatún Lake and is part of its operational water management strategy. The measure will not affect the daily number of transits.
Effective July 3, under the new measure, the ACP said the decision is based on current and projected water levels in Gatun Lake and the potential development of an El Niño weather pattern later this year.
According to the canal authority, the draft adjustment forms part of its water management strategy and will not affect the number of daily vessel transits. It is the first draft restriction introduced in approximately two years.
The move has renewed attention on the Panama Canal’s role in global supply chains following the 2023-24 drought, when water shortages led to draft restrictions and transit limitations. During that period, canal throughput fell by as much as 40 per cent below normal levels.
The ACP said water reserves remain strong following heavy rainfall during the latest dry season. Both Gatun and Alhajuela lakes are currently at maximum capacity, and canal authorities indicated that available reserves provide a buffer should El Niño conditions develop later this year.
The canal is highly vulnerable because its gravity-fed lock system runs entirely on freshwater from Gatun Lake, which also supplies drinking water to half of Panama’s population. During the historic 2023–2024 drought.
Daily transits were slashed from the usual 38 down to 22 ships. Massive shipping bottlenecks forced companies to wait weeks or pay millions of dollars in auctions to bypass lines.
Global supply chains were disrupted, forcing many carriers to route around Africa’s Cape of Good Hope or use overland rail bridges in the United States.
The authority stated that it does not expect major disruption before December and will continue monitoring weather and hydrological conditions on a weekly basis.
At the same time, shipping activity through the canal remains high. According to Clarksons Research, increasing exports of petroleum products, liquefied petroleum gas, and ethane from the United States have intensified competition for transit slots.