The Panama Canal will limit the number of ships allowed to transit the waterway and more strictly allocate transit auctions as part of its ongoing effort to deal with low-water levels on its locks that are cutting the loaded capacity of vessels.

The Panama Canal Authority (ACP) announced Thursday it will limit the number of daily slots on its largest Neopanamax vessel locks to nine per day starting Sept. 3. The canal’s original set of locks will be limited to 25 vessel transits as of the same date, but the number of Panamax vessels will be cut to 23 by Sept. 15.

Through July 2026, the canal had been averaging close to 10 Neopanamax transits per day, according to ACP statistics. Daily Panamax transits averaged about 25 over the same period.

The ACP said the reduction in the number of daily transits may “increase waiting times for vessels arriving at the waterway without a secured reservation.” 

In addition, the agency said it would modify the auction process for ship operators to secure last-minute transits starting Sept. 4.

The ACP will categorize vessels into one of four groups that will be allowed to bid on an auction on a rotating basis, depending on the number of vessels that are waiting to transit. Ship operators will also only be able to bid on one slot per day.

The ACP said the new auction process will give priority to container vessels with the highest TEU capacity. High-capacity container vessels, though, still face coming draft limits on the Panama Canal that cut into how much cargo can be carried.

The draft limits stem from a strong El Niño weather pattern that’s causing a drought in Panama and limits the amount of rainfall in Gatun Lake, which replenishes the locks with fresh water after each ship transit.