Panama Canal increases transits and tonnage while preparing for a new El Niño event
The Panama Canal reported an increase in transits and tonnage during the third quarter of Fiscal Year 2026 (October 2025 – June 2026) while adapting its operations to meet demand from international maritime trade amid the imminent possibility of a severe El Niño phenomenon.
The Canal provided a market update, highlighting results and forward-looking strategies during a call organized by Anna Milne, Managing Director of Emerging Markets Corporate Research at Bank of America Merrill Lynch.
The Panama Canal Administrator, Dr. Ricaurte Vásquez Morales, Deputy Administrator, Sustainability Officer and designated administrator; Ilya Espino de Marotta, and Vice President of Finance; Víctor Vial, participated in the call.
Operational results driven by maritime traffic growth
The Panama Canal Administrator, Ricaurte Vásquez Morales, highlighted some of the main results achieved by the interoceanic waterway.
As of June 30, Fiscal Year 2026, the Panama Canal continues to show strong operational performance, with an average of 35 daily transits and a total of 10,726 transits during the current fiscal year (October–June), representing a 5.2% increase compared with the 10,191 transits recorded during the same period of Fiscal Year 2025.
During this period, the Canal registered 389.96 million CP/SUAB tons (Panama Canal Universal Ship Measurement System), representing a 7.2% increase compared with the 363.66 million CP/SUAB tons recorded during the same period of the previous fiscal year.
He also explained that the container ship segment and Liquefied Petroleum Gas (LPG) vessels continue to drive this growth.
“Strategic initiatives continue to move forward, with the port terminal and pipeline projects entering the final prequalification stage, as well as continued progress on the Río Indio reservoir and Logistics Corridor projects,” the Administrator added.
A strong year in revenues and financial results
The Vice President of Finance, Víctor Vial, stated that the Panama Canal had nine very strong months. “We continue strengthening the balance sheet, which is essential for all the investments ahead. Regarding demand, it remained very strong,” he added.
During this period, total transit revenues reached $4.802 billion, representing a year-on-year increase of 17%, while profits reached $3.614 billion, a 19% increase over the same period.
Prepared for the El Niño phenomenon
The Canal Administrator highlighted that the probability of a severe El Niño phenomenon increased from 25% in April to 81% in July, which is why the Panama Canal continues permanent monitoring of weather conditions and is prepared to implement preventive measures based on lessons learned during the 2023-2024 event.
The Canal Administrator warned that “capacity restrictions will likely be applied, not only due to draft limitations but also due to the number of daily reservations.” However, he noted that this is a decision that “we must let the market determine.”
Daily auction slots continue to be an important mechanism that provides customers with an additional opportunity to secure transit reservations when regular booking options are unavailable or when operational needs require greater flexibility.
These measures are being considered after approximately two consecutive years without the need to implement any draft restrictions, thanks to water availability in the lakes —resulting from heavy rainfall in 2025 and an unusually wet dry season in 2026, which allowed the Canal to maintain excess water storage.
Río Indio Lake advances to strengthen long-term water security
The Canal’s Deputy Administrator, Ilya Espino de Marotta, noted that the Río Indio Lake project represents an important step toward strengthening long-term water security for the Panama Canal and surrounding communities.
Local development initiatives within the watershed have involved more than 1,100 residents in conservation projects and opportunity-generation programs.
At the same time, the engineering and design phase continues, with fieldwork progressing toward the bidding process for the lake project scheduled for 2027.
Environmental studies are also advancing, with the environmental impact assessment process currently underway, while the implementation of the resettlement plan continues to progress with the participation of most families and compensation standards already established in writing.
These coordinated efforts highlight the project’s commitment to sustainable development, environmental management, and community engagement, as the Río Indio initiative enters its next phase.
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