Panama Canal Opens Floodgates as Gatun Lake Reservoir Hits Maximum Capacity

The Panama Canal Authority initiated a preventive water discharge through the Gatún Dam on February 6, marking a abrupt turnaround from the drought conditions that plagued the waterway and constrained shipping throughout the 2023-24 strong El Niño.

Panama Canal Authority said the preventive discharge was triggered after Gatún Lake reached 88.93 feet, with runoff from tributary rivers remaining elevated following days of heavy rain. As of February 7, the lake stood at 88.9 feet, well above the five-year February average of 85.3 feet.

“This action is being implemented taking into consideration that the Gatún reservoir reached its maximum operational level and the fact that surface runoff from tributary rivers remains elevated, due to the rainfall recorded in recent days,” the Panama Canal Authority stated.

The discharge aims to safeguard the canal’s structures and reduce risks to communities located upstream and downstream of the Gatún hydrotechnical complex.

The high water levels represent a stark contrast to the severe drought that crippled canal operations throughout much of 2023 and 2024. For over a year and half, the Panama Canal operated below capacity due to drought conditions exacerbated by a strong El Niño, with daily transits dropping to as low as 24 vessels and maximum drafts falling below 44 feet.

In August 2023, Gatun Lake water levels had fallen to as low as 79.6 feet before recovering. By August 2024, Gatun Lake’s water level had risen to 85 feet—closer to the month’s five-year average of 85.3. With additional rains due to a change to La Niña, the canal has since returned to normal operations, maintaining its design specifications of approximately 36 daily transits and a maximum draft of 50 feet for the Neopanamax locks.

Current maximum drafts stand at 50 feet for Neopanamax vessels and 39.5 feet for Panamax ships.

The operational recovery translated into strong financial performance for fiscal year 2025. The Panama Canal Administration transferred $2.965 billion to Panama’s National Treasury, representing surplus revenues from operations and transit fees. Total revenues rose approximately 14.4% to $5.7 billion, with vessel transits increasing 19.3% year-over-year to 13,404 during the 12-month period.

Daily transits averaged 33 vessels in FY 2025 compared to just 27 during the drought-impacted prior year. Panama’s port traffic also showed robust growth, rising 3.6% in 2025 to 9.9 million TEU containers.

President José Raúl Mulino congratulated the canal workforce for their performance during what he characterized as “a year marked by significant challenges, demonstrating, once again, Panamanians’ ability to face and overcome complex challenges including those that arise from climate change.”

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