The Panama Canal has recorded higher transits and cargo volumes in the first half of Fiscal Year 2026, alongside increased use of its reservation system.
The update was presented during a market briefing hosted by Anna Milne, Managing Director of Emerging Markets Corporate Research at Bank of America Merrill Lynch, and included participation from canal leadership.
Dr Ricaurte Vásquez Morales, Administrator of the Panama Canal, said: “The Panama Canal is open and fully operational, thanks to the dedication of some nine thousand Panamanians who keep this waterway running. Amid all the geopolitical complexities in the world today, the shifts and various factors affecting international trade, the Panama Canal remains open and reliable. With water levels currently at optimal levels, we are accommodating an ever-growing volume of traffic.
“There is strong performance coming from container traffic and liquefied petroleum gas. Energy products are playing an increasingly important role in the volumes we are handling here at the Panama Canal.”
During the first half of FY2026 (October 2025 to March 2026), the Canal handled 6,288 transits, up 224 year-on-year, moving 254 million PC/UMS tonnes, around 5 per cent higher than the same period last year.
Traffic momentum strengthened through the period, with daily averages reaching 34 vessels in January and 37 in March, and peak days exceeding 40 transits.
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Demand for booking systems also increased, with greater reliance on long-term allocation mechanisms and LNG-specific reservations.
The Canal confirmed that all vessels must hold a booking prior to transit, with limited auction slots available for unreserved traffic.
Víctor Vial, Vice President of Finance at the Panama Canal, stated auction prices reflect short-term market pressure: “The average auction price before the Middle East conflict was between $135,000 and $140,000. Following the outbreak of the conflict, that average climbed to approximately $385,000 between March and April.”
He added that advance booking systems have helped maintain predictability: most vessels now secure scheduled transit slots, reducing congestion risk despite volatility in spot demand.
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On climate conditions, Ilya Espino de Marotta, Deputy Administrator and Chief Sustainability Officer, said water management measures remain in place following earlier rainfall variability. She noted reservoir levels are currently stable, with continued monitoring ahead of potential El Niño impacts.
“We don’t anticipate anything significant between now and December, but we continue to monitor the situation closely. We want to keep the lakes as high as possible heading into the next dry season, so we can continue delivering a high-quality service,” she said.
Overall, the Canal reported stable operations supported by improved water availability, stronger energy cargo flows, and sustained demand for scheduled transits, despite wider geopolitical and market uncertainty.
For more information:
Panama Canal Authority – https://pancanal.com/en/
