The Panama Canal Authority is set to reduce the number of vessels allowed to pass through the waterway each day, blaming low rainfall caused by the El Niño weather pattern. The move matters because the canal is a vital artery for global trade, and the cut comes as the shipping industry already grapples with major disruption in the Strait of Hormuz due to the Iran conflict, raising the prospect of further strain on international supply chains.

From 15 September, daily transits will fall from 36 to 32 vessels, with the changes phased in from 3 September. The authority said the step was needed to protect service reliability and preserve water resources for drinking supplies, despite the onset of Central America's rainy season and existing water-saving measures. Around 14,000 ships use the canal annually, generating roughly $3bn (£2.2bn) a year for Panama; a similar cut was made in 2023 after the country's driest October on record, and forecasters warn this year's El Niño could be among the strongest ever recorded.