Water levels have decreased at the Panama Canal due to severe drought, forcing vessels to lighten their loads and pay higher rates.

One of the world's most important shipping routes is restricting weight on vessels from May 24, followed by another decrease on May 29.

The Panama Canal Authority (ACP) said that the maximum draft allowed for vessels transiting the Canal from  May 24 would be reduced to 13.56m or 44.5 ft.

Effective May 30, the maximum draft allowed for vessels will go down to 44 ft, informed the authority. 

The canal is supplied by two nearby lakes which received 50% less rain than usual between February and April. Lack of rain is threatening to bring levels to historical lows in July. 

Experts have warned that new restrictions will likely cause delays and freight cost increases as the Panama string capacities are reduced. 

Hapag Lloyd already announced a PCC (Panama Canal Charge) of $500 per container effective June 1 on all cargo loaded on its Asia to US east coast sailings via the canal.

The canal, which manages around 5% of annual global maritime trade, has been struggling with drought ever since it expanded in 2016 to allow larger ships to pass through its locks.