Drought-hit Panama Canal to expand restrictions on largest ships crossing the waterway

Drought-hit Panama Canal will expand restrictions on the largest ships crossing the waterway, the canal authority's administration said on Wednesday (June 21). According to a report by the news agency Reuters, the restrictions would come into effect from Sunday and limit the neo-Panamax container ships to a depth limit of 43.5 feet. This means that these ships must either carry less cargo or shed weight to float higher.

As per an advisory issued by the port administration, the Panamax ships would also face tightened rules from July 19. Speaking to Reuters, Port administrator Ricaurte Vasquez said the July 19 measure would depend on how much rain pours into the lake system surrounding the canal.

Vaquez said the current lack of rainfall is worrisome as the canal basin must also provide additional drinking water for residents.

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The expansion restrictions come after a series of depth restrictions in the Panama Canal since the beginning of this year because of drought. El Nino, a periodic warming weather phenomenon, brought a severe drought along the Pacific coast.

Vaquez also said on Wednesday that despite the new rules, the flow of ships the canal carried on is as expected so far. The administrator, however, warned the flow of ships could be impacted depending on rainfall and higher route costs due to the new limits.

Water levels inGatún Lakecould hit record lows next month

As the restrictions come into effect, meteorologists warned the water levels in Gatún Lake, which is located at the centre of the canal, could hit record lows in July, with El Nino bringing higher temperatures and less rain, a report by Wall Street Journal (WSJ) on Tuesday said.

The report added that disruptions in the canal's operations would impact Southern Hemisphere exporters and importers in the north. The canal is Panama's biggest foreign-revenue generator responsible for more than $3 billion from tolls last year. Officials have spent years planning for more extreme weather events to preserve the canal's role as an important trade route.

Speaking to the publication, a spokesperson from Maersk said that low water levels at the canal were a clear example of the effects of climate change that caused a ripple through the supply chain.

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