Water levels in Gatun Lake, a key reservoir in the Panama Canal, are currently near the usual August average. Experts warn, however, that continued drought will likely push those levels lower in the months ahead, prompting the Panama Canal Authority to impose weight limits and surcharges. Prolonged dry conditions linked to El Niño have further reduced available water, restricting how many ships can safely pass through the canal. Vessels require tens of millions of gallons of fresh water to operate the canal’s lock system. Oil and container shipping companies are now bidding heavily for limited “priority” transit slots. Smaller cargo ships that previously paid around $15,000 to move ahead in line are now averaging roughly $1 million per transit. At least one larger tanker, which would normally pay roughly $55,000, paid $4 million for a priority passage. See more at: www.circleofblue.com “Falling Water Levels in Panama Canal Send Shipping Costs Surging,” Christian Thorsberg 8/18/2026)
