Panama Canal authorities announced that from Thursday (September 3), the number of vessels permitted to pass daily will be restricted to 34, down from the traditional 40. This cap will further drop to 32 by September 15. The restrictions are necessitated by low water levels, with rainfall from May to August down 34% from historical averages due to the El Nino phenomenon. The canal, which handles about 5% of global maritime trade, is also experiencing increased traffic as shippers divert from the Strait of Hormuz amid ongoing crisis. This surge in demand has led to a threefold increase in auction prices for transit slots, with one South Korean ship reportedly paying a record $5.3 million on September 1. Analysts warn these restrictions will heighten shipping pressure, potentially forcing vessels to reroute via the Cape of Good Hope and driving up freight costs.