Loading...
The Panama Canal could further reduce the number of vessels permitted to transit the crucial waterway as intensifying El Niño conditions worsen drought and water shortages, raising fresh concerns for global shipping, commodity flows and supply chains.
The Panama Canal Authority’s new administrator, Ilya Espino de Marotta, has warned that daily transit slots could eventually fall to around 29 if rainfall fails to replenish the reservoirs that supply the canal’s lock system. The canal is currently moving towards a limit of 32 vessels a day, down from 36 previously. Authorities have indicated that further restrictions could be introduced in January, February or March depending on rainfall during the critical months ahead.
The potential reduction comes as the Panama Canal is already facing heightened demand. The waterway has become particularly important for shipping lines seeking alternatives amid disruptions to traffic through the Strait of Hormuz. The canal handles around 5% of global maritime trade and provides a key shortcut between the Atlantic and Pacific oceans.
The canal’s dependence on freshwater makes it especially vulnerable to prolonged dry conditions. Each vessel transit consumes approximately 200 million litres of water, which is used to operate the locks. Between April and August, Panama recorded a rainfall deficit of 35.8% against the historical average, with authorities reporting no immediate signs of recovery.
Alongside transit restrictions, the maximum permitted vessel draft has already been reduced from 15.2 metres to 14.6 metres. A lower draft can restrict the amount of cargo vessels are able to carry, potentially affecting vessel economics and increasing pressure on freight rates.
The situation recalls the severe 2023-24 drought, when daily Panama Canal crossings fell as low as 22. However, the canal authority does not currently expect restrictions to reach those levels.
Any further reduction in Panama Canal capacity could increase waiting times, vessel operating costs and freight rates, while prompting carriers to consider longer alternative routes. Industry observers have already warned that the canal’s constraints could add to disruptions affecting global commodity and supply-chain movements.
For a maritime industry already navigating geopolitical disruptions and shifting trade routes, the prospect of another capacity constraint highlights the growing influence of climate and water security on global logistics networks. Panama is pursuing a new reservoir project on the Rio Indio as a longer-term solution, although completion is expected to take several years.
𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
Tuticorin International Container Terminal (TICT) at V.O. Chidambaranar (VOC) Port has been declared a “Green Terminal” after achieving 100% electrification of its operational equipment, according to an official statement. Union Shipping Secretary Vijay Kumar made the declaration during a review of ongoing development projects at VOC Port, valued at approximately ₹18,000 crore. As part of the terminal’s green transition, the Secretary flagged off 13 electric Internal Transfer Vehicles (E-ITVs) to support cleaner and more sustainable container-handling operations. Advancing Green Port Operations The complete electrification of TICT’s operational equipment is expected to reduce diesel consumption and local emissions from container-yard and quay operations. The initiative marks a significant step towards cleaner port logistics, as the maritime sector increasingly focuses on reducing its environmental footprint. The green terminal designation relates to the electrification of operational equipment and does not imply that visiting vessels are powered by alternative fuels. VOC Port Expands Green Energy Initiatives During the review, the Shipping Secretary also assessed several green infrastructure initiatives at VOC Port, including a pilot methanol bunkering and refuelling facility, a green hydrogen pilot project, and wind energy infrastructure. VOC Port Chairman Sushanta Kumar Purohit highlighted the port’s annual cargo-handling capacity of 82 million tonnes and its long maritime history, with trade links dating back to 123 AD. The port is also pursuing employee welfare and social infrastructure projects, including a golf course and a Kendriya Vidyalaya. Outer Harbour Project to Boost Transshipment The review also covered the outer harbour project, which is expected to add 4 million tonnes per annum of cargo-handling capacity. The project aims to strengthen Tamil Nadu’s position as a major transshipment hub for southern India. With the electrification of terminal equipment and investments in alternative fuels and green energy, VOC Port is advancing its efforts to combine sustainable port operations with expanded cargo-handling and transshipment capacity. Follow CARGOCONNECT for more such updates
Maersk’s Singapore-flagged container vessel Maersk Chattogram is undergoing its first planned drydocking in India at L&T Shipbuilding’s Kattupalli Shipyard near Chennai, marking the first operational milestone under the Maersk–L&T maritime collaboration. A.P. Moller-Maersk has partnered with Larsen & Toubro (L&T) for the planned drydocking of the Maersk Chattogram at the Kattupalli Shipyard near Chennai. The Singapore-flagged container vessel is scheduled to arrive at the yard on October 20, 2026, subject to operational and weather conditions. The project is the first operational outcome of the Memorandum of Understanding signed by Maersk and L&T during India Maritime Week 2025. The MoU covers potential cooperation in shipbuilding, ship repair, knowledge exchange and development of global-standard maritime capability in India. 10-Year Maintenance and Special Survey The drydocking forms part of the vessel’s planned 10-year lifecycle maintenance programme. Work will include the scheduled special survey along with maintenance and overhaul of the hull and structure, machinery, equipment and propulsion systems. Drydocking allows inspection and repair of areas normally submerged underwater, alongside work on onboard systems. The process is essential for maintaining a vessel’s safety, seaworthiness, operational performance and reliability for the next five years. India’s Largest Shiplift System Maersk Chattogram will undergo a specialised lift-out operation using India’s largest Shiplift system at L&T Shipbuilding, Kattupalli. The system will lift the vessel out of the water for extensive inspection, maintenance and repair work. The project will bring together Maersk’s fleet and technical teams with L&T, Indian subcontractors, suppliers and maritime service providers. The companies said the focus will be on safe execution, quality delivery and knowledge sharing throughout the docking. Boost for India’s Ship Repair Ecosystem The drydocking signals growing confidence in India’s ship repair and shipyard capabilities. Maersk said the project aligns its global technical requirements with India’s developing shipyard, supplier and maritime-service ecosystem. L&T said the docking advances its strategic partnership with Maersk and supports efforts to strengthen domestic capabilities and supply chains across the shipbuilding ecosystem. Both companies view India as having strong potential to become a more important global maritime hub
Paradip Port Authority (PPA) has set a target of handling more than 170 million metric tonnes (MMT) of cargo in the financial year 2026-27, building on its record throughput of 156.45 MMT in FY 2025-26. The target represents an increase of approximately 8.7% over the previous financial year, reinforcing the port’s ambition to strengthen its position as a leading maritime gateway on India’s eastern coast. PPA Chairperson Susanta Kumar Purohit announced the target during an interactive meeting with members of the Paradip Port Stevedores Association on 15 October 2026. The meeting, attended by heads of departments, focused on improving cargo-handling productivity, resolving operational bottlenecks and strengthening coordination among port stakeholders. Infrastructure Upgrades to Support Cargo Growth To facilitate higher cargo volumes, PPA reviewed several infrastructure improvement measures aimed at ensuring smoother cargo movement and more efficient port operations. These include upgrading roads within and outside the port premises, improving paved surfaces and developing suitable cargo-stacking areas to facilitate transportation and minimise waterlogging. Drainage improvements have also received approval, while better sanitation, hygiene and welfare facilities for workers and visitors remain part of the port’s efforts to improve conditions across its operational areas. Strengthening Operational Efficiency and Coordination The discussions also covered mechanisation, dredging requirements, traffic management and coordination between PPA, private terminal operators and stevedores. The authority emphasised the importance of integrating modern cargo-handling practices while safeguarding the business interests of traditional stevedoring operators. Purohit called for collective efforts from port officials and industry stakeholders to improve productivity and maintain competitiveness amid global economic uncertainties and increasing regional competition. Greater coordination among stakeholders is expected to help address operational challenges and support more consistent cargo movement. Building on Record Performance Paradip Port’s latest target follows its highest-ever annual cargo throughput since operations began in 1966. Achieving the FY 2026–27 goal will require sustained operational performance, reliable infrastructure and effective collaboration across the port’s cargo-handling ecosystem. The planned improvements underline the importance of combining infrastructure development with day-to-day operational efficiency. As cargo demand evolves, Paradip’s ability to streamline port operations and strengthen stakeholder coordination will be critical to achieving its growth target and supporting trade across eastern India. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
