The Panama Canal Authority has implemented draft and transit restrictions through much of 2026 to conserve water in Gatún Lake amid El Niño-driven rainfall shortfalls, reducing Neopanamax slots to nine daily and maximum draft to 48 feet before partial relief in late September raised the draft to 49 feet and added one slot effective October 15 for a total of 33 daily transits. These measures have elevated shipping costs via surcharges, extended waiting times averaging over five days, and prompted rerouting around South America for some LNG carriers and bulkers, with bulker transits already down 22% year-over-year. Trader sentiment reflects ongoing watershed deficits despite near-average September precipitation, with the reservation system remaining essential to avoid indefinite delays. Key upcoming catalysts include October–November rainfall data and the authority’s fiscal 2027 transit guidance targeting around 29.5 daily slots on average.