Panama city: The Panama Canal Authority has announced plans to reduce ship traffic through the canal to fewer than 30 operations per day as a response to an ongoing drought. This decision follows an earlier reduction measure implemented this month as a result of the El Ni±o climate phenomenon.

According to National Iraqi News Agency, the El Ni±o phenomenon, which occurs every two to seven years, has led Panama to declare a nationwide state of emergency. This climatic event results in rising surface water temperatures in the central and eastern tropical Pacific Ocean, causing significant changes in wind patterns, atmospheric pressure, and rainfall across the globe for several months. The resulting severe drought in Central America has severely impacted the Panama Canal, a crucial waterway through which about 5% of global trade transits.

On September 4, the Panama Canal Authority initially reduced the number of daily transits from 36 to 32 ships to conserve water resources. The authority now plans to further reduce the average number of transits to 29.5 per day starting in October, as indicated in a draft budget submitted to Parliament. Canal Affairs Minister Jos© Ram³n Icaza emphasized that the approved budget ensures the canal’s continued safe, efficient, and profitable operation.

Most forecasts predict that this year’s El Ni±o phenomenon will be the strongest since data collection began four decades ago. Previously, in 2023, the Panama Canal Authority had to reduce daily transits to 22 ships due to the effects of El Ni±o.

The decision to limit ship traffic comes as the Panama Canal’s significance grows amid disruptions in shipping traffic through the Strait of Hormuz, caused by ongoing conflicts between the United States and Iran. The Strait of Hormuz is a critical passage for approximately one-fifth of the world’s oil and gas trade.