Seatrade-Maritime: Panama Canal sees increase in transits as El Niño impact looms

Published by Seatrade-Maritime

The Panama Canal saw an increase in transits and tonnage during the third quarter of the 2026 financial year as it is preparing to meet the demand in the face of an impending severe El Niño phenomenon.

The Panama Canal Authority (ACP) provided a market update, highlighting results and forward-looking strategies during a market call with the Bank of America-Merrill Lynch, in which participated the Canal administrator Dr Ricaurte Vasquez, the deputy administrator and designated administrator, Ilya Marotta, and the vice president of finances, Victor Vial.

The waterway reported an average of 35 daily transits and a total of 10,726 transits in the current fiscal year (October–June), representing a 5.2 % increase compared with the 10,191 transits recorded in the same period of 2025 fiscal year.

During this period, the Canal recorded 389.96 million tonnes PC/UMS (Panama Canal Universal Ship Tonnage System), up 7.2% compared with the 363.66 million tonnes PC/UMS a year before, with the container ship and LPG vessel segments driving growth.

“We continue to strengthen the balance sheet, which is essential for all the investments we have ahead of us. As for demand, this remained very strong,” said Vial.

Total transit revenue was up to $ 4.8 billion, increasing 17% with profits growing 19% to $3.61 billion over the same period.

“Strategic initiatives are proceeding as planned, with the port terminal and gas pipeline projects entering the final pre-qualification stage, and continued progress on the Río Indio reservoir and Logistics Corridor projects,” added the Administrator.

However, Vasquez noted that the probability of a severe El Niño event has risen from 25% in April to 81% in July; consequently, the Panama Canal Authority is continuously monitoring weather conditions and is prepared to implement preventive measures, based on lessons learnt during the 2023–2024 event.

Vasquez warned that “capacity restrictions will likely be applied, not only in terms of draught but also regarding the number of daily bookings”. However, he noted that this is a decision that “we must let the market dictate”. Shipping companies can secure additional transits opportunities through auctions, however, these can come at considerable expense.

Over the past two years reductions in water levels have not been necessary as a result of the heavy rainfall in 2025 and an unusually wet dry season in 2026, which the Canal took advantage of to maintain excess storage in the lakes, the ACP said.

The Rio Indio project marks a significant step towards strengthening long-term water security for the Panama Canal and the surrounding communities and the engineering and design phase is proceeding as planned, with fieldwork progressing towards the tendering process for the lake project, scheduled for 2027, said Ilya Marotta who supervises the Rio Indio project.