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Panama Canal to suspend some bookings on water levels
Red Sea, Strait of Hormuz also face disruptions
Tourists watch a Hapag-Lloyd containership in the Agua Clara Locks near Colon, Panama, on Feb. 10, 2026. (Luis Antonio Rojas/Bloomberg)
Key Takeaways:
- The Panama Canal Authority will temporarily suspend part of the booking system for vessels seeking to use the waterway that links the Pacific and Atlantic Oceans, according to shipping agent Norton Lilly. Daily auctions in so-called period three for the
- The move reflects current and projected water levels at Gatun Lake and concerns about a potential El Niño pattern that could further restrict canal operations.
- Shipping agent Norton Lilly said the change may increase competition for remaining booking slots and create greater challenges for vessels without confirmed reservations.
The Panama Canal Authority will temporarily suspend part of the booking system for vessels seeking to use the waterway that links the Pacific and Atlantic Oceans, according to shipping agent Norton Lilly.
Daily auctions in so-called period three for the canal’s Panamax-class locks are to be halted from July 25 until further notice given present and projected water levels at Gatun Lake, Norton Lilly said in a notice on its website. As a result, daily booking capacity has been cut from 36 to 34 vessels, it said.
The suspension is being introduced based on current hydrological conditions, as well as the potential development of an El Niño weather pattern, it said, citing the authority. Previous El Niños have dried up freshwater lakes supplying the canal, causing the authority to impose daily transit restrictions.
The tighter access to the Panama conduit comes as other major global chokepoints have faced disruptions, roiling trade flows. In the Middle East, the Iran-U.S. war has seen traffic through the Strait of Hormuz come to a near-halt after vessel attacks. Elsewhere, Yemen’s Iran-backed Houthi militant group has threatened shipping via the Bab el-Mandeb Strait in the Red Sea.
The Panama suspension would mean fewer opportunities to get slots; more competition for openings in periods one and two; and potentially “greater challenges” for ships without confirmed bookings, Norton Lilly said.
The Panama Canal Authority did not immediately respond to calls and emails seeking comment outside of working hours.
