The Panama Canal's water level is dropping thanks to a drought, throttling the number of ships that can get through

• The canal has capped the daily number of ships that can pass through because of the summer drought.
• Its income could fall by $200 million because of a lack of rain, the administrator said Thursday.

The Panama Canal is experiencing an intense drought that's forcing officials to cap the daily number of ships that can pass through the vital waterway.

Ricaurte Vásquez Morales, the administrator of the canal, said Thursday that operators had decided to allow a maximum of 32 ships a day through the canal, down by about 14% from a norm of about 36 to 38.

He said the canal's income could fall by as much as $200 million a day next year because of lost traffic.

The canal system relies on freshwater rather than seawater, meaning that poor rainfall this summer has affected the canal's operations.

"The big disadvantage that the Panama Canal has as a maritime route, is that we operate with freshwater, while others use seawater," Vásquez said, the French state-owned international-news outlet France 24 reported.

The outlet reported that meteorologists are warning that the El Niño climate pattern, which can cause drought and flooding at the same time in the Pacific Ocean, could worsen the situation for the canal.

"We have to find other solutions to remain a relevant route for international trade. If we don't adapt, we are going to die," Vásquez said.

He added that shipping companies could use other routes if the restrictions carry on.

The 51-mile canal connects the Atlantic Ocean and the Pacific Ocean, which has historically made it a vital trade route.

It had expected to bring in fees of about $4.9 billion in 2024 before the drought, Vásquez said.