Panama Canal watershed rainfall deficit reaches 34% below average, threatening transit capacity

The Panama Canal Authority reports a significant hydrological deficit, with rainfall 34% below historical averages and reservoir inflows down 44% between May and August 2026. This persistent water scarcity, exacerbated by El Niño, threatens to constrain transit capacity through the critical waterway. It remains uncertain whether current water management strategies will suffice to maintain normal operations through the remainder of the year.