Posted on July 27, 2026
The Panama Canal reported higher transit volumes and cargo tonnage during the third quarter of fiscal year 2026 (October 2025–June 2026), while continuing to adapt its operations to meet global shipping demand in anticipation of a severe El Niño event.
The Panama Canal provided a market update during a conference call hosted by Anne Milne, managing director of emerging markets corporate research at Bank of America Merrill Lynch, which highlighted its operational performance and long-term strategic initiatives.
The call featured Panama Canal Administrator Dr. Ricaurte Vásquez Morales, Deputy Administrator, Chief Sustainability Officer, and Administrator-designate Ilya Espino de Marotta, as well as Vice President of Finance Víctor Vial.
Operational Performance
Administrator Vásquez highlighted the Panama Canal’s strong operational performance.
As of June 30, FY2026, the Panama Canal averaged 35 daily transits, with a total of 10,726 transits during the current fiscal year (October–June), a 5.2% increase from the 10,191 transits recorded during the same period in FY2025.
During the same period, the canal handled 389.96 million Panama Canal Universal Measurement System (PC/UMS) tons, up 7.2% from 363.66 million PC/UMS tons during the corresponding period of the previous fiscal year.
Additionally, Dr. Vásquez noted that container ships and liquefied petroleum gas (LPG) carriers continue to drive this growth.
“Our strategic initiatives continue to advance with both the port terminal and pipeline projects entering the final prequalification stage, alongside continued progress on the Río Indio reservoir and the Logistics Corridor project,” the administrator said.
A Strong Fiscal Year
Vice President of Finance Víctor Vial said the Panama Canal delivered a very strong first nine months of the fiscal year. “We continue to strengthen our balance sheet, which is essential for the investments ahead. Demand has also remained very strong,” he said.
During the period, revenues reached $4802 million USD which represents a 17% year-over-year increase, while net income totaled $3614 million USD; a 19% increase compared with the same period last year.
Preparing for El Niño
The Panama Canal Administrator noted that the probability of a severe El Niño event has increased, rising significantly from 25% in April to 81%, as of July. As a result, the Panama Canal continues to closely monitor weather conditions and stands ready to implement preventive measures based on lessons learned during the 2023–2024 El Niño event.
Vásquez warned that “capacity restrictions will likely be implemented, not only in terms of draft limitations but also through reductions in the number of daily booking slots.” However, he emphasized that the timing and scope of any restrictions will ultimately depend on market conditions.
Daily transit auctions remain an important tool that provide customers with an additional opportunity to secure transit reservations when standard booking options are unavailable or when operational flexibility is required.
These precautionary measures are under consideration for the first time after nearly two consecutive years in which no draft restrictions were necessary, thanks to an abundant availability of water in the canal’s reservoirs. Heavy rainfall throughout 2025 and an unusually wet 2026 dry season allowed the canal to maintain above-normal water storage levels in its lakes.
Progress on the Río Indio Lake Project
Deputy Administrator Ilya Espino de Marotta said the Río Indio Lake project represents a major step toward strengthening long-term water security for both the Panama Canal and surrounding communities.
Local development initiatives within the watershed have already engaged more than 1,100 residents through conservation efforts and community development programs.
Meanwhile, the engineering and design phases are advancing with fieldwork completed ahead of the project’s planned 2027 tender process.
Environmental studies and the impact assessment are also underway. At the same time, implementation of the resettlement plan continues with most affected families participating in the process and written compensation standards already established.
These coordinated efforts demonstrate the project’s commitment to sustainable development, environmental stewardship, and community engagement as the Río Indio initiative moves into its next phase.
