The Panama Canal is once again planning to reduce the number of ships passing through it, this time due to a worsening drought linked to the El Niño climate phenomenon. El Niño is a natural weather pattern that alters global wind, air pressure, and rainfall patterns, and it is expected to be the strongest in four decades. This has led to lower than usual rainfall in the region, impacting the water supply that the canal depends on to operate its system of locks. The canal, which connects the Caribbean Sea to the Pacific Ocean, is a vital shipping route, handling about 5% of global maritime trade and nearly 40% of U.S. container traffic. It is often preferred by shippers for its cost-effectiveness and shorter transit times, especially for trade between China, Asia, and the U.S. According to a draft plan submitted to Panama’s parliament, the number of vessels allowed through the canal will drop to an average of 29.5 per day starting in October, a decrease of 18% from the 36 ships per day recorded in August. In September, officials had already reduced daily transits from 36 to 32 due to the ongoing drought. The situation has been further complicated by geopolitical tensions, such as the U.S. and Israel’s conflict with Iran, which has disrupted shipping in the Strait of Hormuz and increased costs for companies relying on the Panama Canal. In August, ships waiting to enter the canal faced delays of up to 10 days, the longest in nearly five months. In some cases, shipping companies paid up to $4 million to bypass the queue through a daily auction system. The Panama Canal relies on fresh water from rivers flowing into Lake Gatun to operate its locks, which function like elevators to lift ships 26 meters (85 feet) from sea level to the lake and then back down to the Pacific. However, with water levels in the lake declining, the Panama Canal Authority may need to impose further restrictions to ensure the safety of ships and conserve water. In 2023, water levels were so low that the number of daily transits was cut from 38 to 22, leading to a backlog of ships and forcing companies to seek alternative routes. El Niño has had a severe impact across Central America and parts of northern South America, where nine countries experienced their hottest June-August period on record this year. According to an analysis by Agence France-Presse using data from the European Copernicus program, 52 countries across all continents broke their seasonal temperature records during the same period. The extreme heat has manifested in various ways, including record-breaking heatwaves in Europe, devastating droughts in Sudan, and toxic smoke in Indonesia. In Africa, more than a third of the people affected by the hottest northern summer months were in the Sahel region and surrounding areas, with 18 African countries setting new temperature records for the June-August period.