Panama Canal to Cut Neopanamax Draft to 15.09 Meters From July 3 on El Niño Threat

The Panama Canal Authority said on Friday, June 5, 2026, that it will reduce the maximum authorized draft in its Neopanamax locks to 15.09 meters beginning July 3, citing current hydrological conditions and a likely El Niño development in the coming months. The measure aims to safeguard operations of the interoceanic waterway, a critical artery for global trade. The restriction will force large container ships and bulk carriers to lighten loads or bypass the canal altogether. The larger Neopanamax locks, which opened in 2016, can handle vessels with capacities of up to 14,000 TEUs. A lower draft reduces the water depth needed for safe transit, effectively limiting cargo tonnage per vessel. Reduced throughput at the canal, which handles about 5% of world maritime trade, could raise shipping costs and tighten supply chains, particularly for energy, grains and containerized goods moving between Asia and the U.S. East Coast. Past El Niño-driven droughts have forced similar draft cuts, most recently in 2023, contributing to spot rate spikes on affected routes.