Tourists view a Hapag-Lloyd containership at the Agua Clara Locks near Colon, Panama on February 10, 2026. (Luis Antonio Rojas/Bloomberg)
key takeaways:
- The Panama Canal Authority will temporarily suspend part of the booking system for ships wanting to use the waterway linking the Pacific and Atlantic oceans, according to shipping agent Norton Lilly. Daily auction in the so-called period three
- The move reflects current and projected water levels in Gatun Lake and concerns about a potential El Niño pattern that could further restrict canal operations.
- Shipping agent Norton Lilly said the change could increase competition for remaining booking slots and create greater challenges for ships without confirmed reservations.
The Panama Canal Authority will temporarily suspend part of the booking system for ships wanting to use the waterway linking the Pacific and Atlantic oceans, according to shipping agent Norton Lilly.
Norton Lilly said in a notice on its website that daily auctions in so-called period three for the canal’s Panamax-class locks would be halted from July 25 until further notice, given the current and projected water levels in Gatun Lake. As a result, the daily booking capacity has been reduced from 36 to 34 ships.
Citing the authority, it said the suspension is being implemented based on the prevailing hydrological conditions as well as the possible development of the El Nino weather pattern. The last El Nino dried up the freshwater lakes supplying the canal, forcing authorities to impose daily transit restrictions.
The tightening of access to the Panama Canal comes as other major global chokepoints have faced disruptions, declining trade flows. In the Middle East, traffic through the Strait of Hormuz has come to a near halt following attacks on ships due to the Iran-US war. Elsewhere, Yemen’s Iran-backed Houthi militant group has threatened shipping through the Bab al-Mandeb strait in the Red Sea.
Panama suspension will mean fewer chances to get a slot; More competition for openings in periods one and two; And there are potentially “big challenges” for ships without confirmed bookings, Norton Lilly said.
The Panama Canal Authority did not immediately respond to calls and emails seeking comment outside business hours.
