The Panama Canal is grappling with significant disruptions as drought conditions, exacerbated by El Niño, lead to falling water levels in key feeder lakes. Daily ship transits could potentially decrease from 32 to just 27, impacting approximately 5% of global trade. The Canal has postponed planned draft reductions for Neopanamax vessels but warns of potential traffic limitations. Shipping companies are diverting vessels via Cape Horn, facing increased risks and costs. As drought impacts shipping routes, pressure on global energy markets grows, raising concerns about rising consumer costs. Recent adjustments in booking rules aim to manage capacity, but the ongoing water crisis continues to threaten trade efficiency.